ECONOMETRIC ANALYSIS PROJECT

ECONOMETRIC ANALYSIS PROJECT ECN 5330 (Fall 2015) Your project will be an original analysis of a statistical relationship using the techniques and theory learned in class. The purpose of the project is to show me that you can apply the techniques you have learned in class. The analysis should use appropriate statistical techniques and the interpretation should be guided by economic (or other) theory. Successful projects will demonstrate an understanding of the principles learned in class. These principles may include (but are not limited to): 1.An understanding of the difference between correlation and causation 2.An understanding of the correct use of various functional forms 3.An understanding of hypothesis testing 4.An understanding of the concepts of omitted variable bias, multicollinearity, heteroscedasticity, autocorrelation, and measurement error. PROJECT FORMAT AND STYLE Each project must contain: A regression with at least 2 independent variables A clear explanation of the regression model A clear interpretation of the results A hypothesis to be tested via t-test or F-test and the results of your hypothesis test At least one post-estimation result. This can be a RESET test or other specification test, a test for heteroscedasticity, a test for autocorrelation, etc. An analysis of the potential problems or weaknesses of your model. The paper should: Be about 6-8 pages of double-spaced text (max of 10), plus graphs, tables, etc. Use headings and subheads to guide the reader. Discuss the components of all tables, rather than depending upon the reader to interpret them. Carefully document all sources. A good rule of thumb for documentation and explanation is this: Using only the information in your paper, I should be able to replicate the analysis you have done. GRADE BASIS The paper is worth 20% of your total grade. Paper grades are based on your: (a) skill in managing and obtaining data; (b) appropriate use of statistical technique; and (c) clarity of the presentation; all within the context of (d) the complexity of the chosen topic. TOPICS Your paper may be on any appropriate topic. Below is a sample of topics addressed in previous successful papers: Statistical determinants of Sumo wrestling success Statistical relationships between diamond attributes and prices Analysis of Top Gear Lap times and vehicle attributes A model of Idaho potato prices and weather Economic Freedom and Gender Inequality A statistical test of differences in race-engine performance Housing starts and macroeconomic indicators Homicide rates and capital punishment Road bike frame weights and prices State renewable energy consumption and fossil fuel production Ski resort attributes and lift ticket prices