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    1. the topic is how do age influnence income.

      2. Introduction, Literature Review, Model, & partial Data: (Due Tuesday, February 27th) Turn in a draft of the paper (less than 4 pages, excluding tables and references) that includes the Introduction, Literature Review, and Model sections, as well as a partial Data section. Include an updated version of Table A1 and add Tables 1 and 2.

      • Introduction: The introduction should briefly provide background on the topic, introduce the research question and why it is interesting, and preview the rest of the paper. Much of this can be derived from your research proposal. Note that you will eventually update the introduction after you complete the full project.

      • Literature Review: A literature review is not an annotated bibliography. A well-written literature review compares and contrasts the relevant papers and relates them to the current study. Your research must reference at least 5 relevant peer-reviewed journal articles.

      • Model: Discussion of the empirical model should include (a) the regression equation, (b) jus- tification for the functional form and choice of independent variables, and (c) clear, testable hypotheses for coefficient estimates supported by relevant economic theory. Create Table 1 summarizing your econometric model and predicted coefficient estimates for key independent and some control variables, as illustrated in the example packet.

      • Partial Data: This section should briefly describe the data source(s) and present summary statis- tics in Table 2. See table examples in research paper packet. Basic summary statistics should include: sample size, mean, standard deviation, minimum, 25th percentile, median, 75th per- centile, and maximum.

      • Submit an electronic copy of the STATA code used to generate the summary statistics.

        3. Initial Empirical Analysis: (Due Tuesday, March 14th) This component should include revised ver- sions of your Introduction, Literature Review, and Model sections (including Table A1 and Table 1). You should now include a complete Data section with an updated version of Table 2, as well as an Empirical Results section with Table 3. The draft should be less than 6 pages, excluding tables and references.

• Data: In this section, describe the data set (e.g., cross-section, time series, or panel data). Ad- dress variable names, units of measurement, and reliability of the data. Is it reasonable to assume the data are unbiased? Discuss whether the data correspond to economic variables proposed by the theory. Include an updated version of Table 2 with basic summary statistics, and any other subsequent tables required to describe the data (e.g., one might break dummy variables


out by subgroup).2 Discuss interesting points about the summary statistics for key dependent and independent variables. Consider any other problems that might affect your analysis such as multicollinearity, missing observations, or concerns over data quality.

  • Empirical Results: Create Table 3 that reports regression results for at least one model. Include additional models in subsequent columns of the table as needed. Include a brief write-up that (a) interprets the regression results as they relate to the predicted hypotheses, (b) discusses the most appropriate model, and (c) addresses any concerns with the regression model raised by the results. Keep the writing brief because the analysis may be revised substantially.

  • SubmitanelectroniccopyoftheSTATAcodeusedtogeneratethesummarystatisticsandresults. 4. Second Empirical Analysis: (Due Thursday, March 23rd) Include all of the same components as in

    the Initial Empirical Analysis, with all necessary revisions. In addition, create the following:

    • Table 4 that reports an analysis of the error term for your preferred model (normality, autocor- relation, heteroskedasticity). Refer to the research paper packet and class notes for examples. Update the writing from the initial empirical analysis to accommodate all revisions and to ad- dress any concerns raised by the error analysis.

    • A Robustness section, which addresses any necessary modifications to the empirical model used to rule out alternative stories that would explain your results. To the extent possible, the section should also attempt to address any serious concerns regarding quality of data, mismatch between data and theoretical variables, or outliers. Report robustness checks in Table 5.

    • Again, submit STATA code on-line. 

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