ECO 324 ECONOMETRICS II: GUIDELINES FOR TERM PROJECT

In this term project, choosing a topic in economics, you are expected to i) deal with econometric modeling in order to define a basic regression equation, ii) estimate this regression using a statistical software package ( Eviews, GRETL, etc.) and obtain the basic results, ii) test for the presence of autocorrelation problem and for homoscedasticity assumption, and if there is any problem, take some measure to overcome them and iv) interpret the results that you reach after necessary correction(s). To this end,

1) Choose a topic of your interest in economics; define the main problematic that you will be investigating.

2) Use a few keywords related to your topic in the search engines that your library is subscribed, in order to search for papers published in scientific journals focusing on the issue of your interest. Make sure to choose a paper carrying out a regression analysis.

3) Make a reapplication of the analysis in this paper as closely as possible. In doing so, you could use the same data set or different data. For example, the paper that you chose may examine data from Mexican Economy and you might want to apply a similar analysis to Turkish data. As another example, the paper that you chose may use data from 1970-2004 and you might want to update the data; say, spanning from 1970-2011.

4) Your Project must include an introduction, model (methodology), empirical results and conclusion sections. In introduction section, you must introduce the issue you will be analyzing, and discuss the significance of studying it and its implications. In method section, you must define the regression equation that allows you to examine the issue you are focusing and discuss the theoretical expectations on the parameters of your regression. In results section, you must estimate the regression and test for the presence of autocorrelation problem and for homoscedasticity assumption and discuss the results from these tests. If you identify any problem, you must take some measures to overcome the problem and interpret the findings after making necessary correction(s). In conclusion section, you must discuss your findings in relation with the issue of your interest based on the empirical results.

5) Your project must be typed in Times New Roman characters, 12 font size, double-space. The project must not be longer than 8 pages (excluding the appendix in which you will be handing in the computer outputs from your applications).

6) You can do your project in a group of at most three students.

7) Due date is the last week of the semester in class time.