In this note we lay out some details regarding the term paper and some basic guidelines of how to approach the project. We do not want to impose strict rules, so have in mind that we expect that you exploit your creativity and interests.

But here are some general guidelines.

1. Choose a topic which interests and challenges you: Typically a topic starts with a question you ask yourself while in class, or when you read some paper or textbook for the class. It can also arise from some previous concern you have related to a particular financial crisis. Your paper should be an attempt to write a well-organized answer to whatever question you want to tackle.

2. Propose an answer to your question. This answer may end up being right or wrong. That is exactly what your research should help elucidate.

3. Find a way to answer the question. You can for example

a) survey the literature,

b) work with the data

c) develop your own model. It is important that you are systematic and that you always have your focus on the main question and its answer the main question. Avoid some questions that are too general and might be too difficult to answer. Come and talk to us before you start writing the paper to help you understand to tackle the question or help you to focus or even generalize it.

4. Write the paper. We do not want to restrict the size of the paper and your creativity. Nevertheless, a good paper should be around 10 pages long, with 12 size fonts and one and a half line space between text. Using the following structure will help you discipline your analysis:

a) Abstract. A 150-words abstract with your main question and your key finding(s).

b) Introduction: State precisely the question, hypothesis and methodology to be used in answering the question. Briefly state your main finding(s).

c) Main body: This is where you show what you advanced in the Introduction. Here is where you develop the methodology, which can be a survey of the literature, some work on data, expanding an existing model to explore the implications relevant to you question, etc.

 d) Conclusions: This is a summary of what you have done, how your conclusions are relevant to answer other questions and why the results may lead to further research.

Potential sources that I had thought of: more or different ones can be used

https://www.ciaonet.org/attachments/18686/uploads

http://www.anderson.ucla.edu/faculty/sebastian.edwards/dollariz-eco-perf-IJFE.pdf

http://ageconsearch.umn.edu/bitstream/196817/2/Analysis%20of%20the%20impact%20of%20dollarization%20and%20CAFTADR%20on%20El%20Salvadors%20Trade%20Flows%2002.pdf

http://atlas.media.mit.edu/en/profile/country/zwe/

The paper has to contain the gravity model and run regressions using data. You can tweak my hypothesis to the best way that sort of works with the data being looked at.