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This assignment needs you to specify an econometric model for the topic of your choice.

1) Provide a clear statement of the research topic and the underlying relationship which you are modeling. Identify the dependent variable and the independent variables (minimum of 3 independent variables) in your model. prepare the equation to specify this model.  Describe the theoretical underpinnings of the model you have specified. Why is it significant to study/research the relationship described by the model? Who do you think must be interested in the results?  Based on the theory, describe how each independent variable is expected to affect the dependent variable (i.e., the expected signs for the slope parameters in the model).

2) describe how all the variables are defined. 

3) If there are any explanatory variables which are qualitative in nature, define the dummy (or binary) variables which can be used to incorporate these factors into the model.

4) Describe what type of data you will use to estimate the model - time series, cross-section, or panel data.

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M91193

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