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FE331 PROJECT Spring 1993
OBJECTIVE:
(1) To provide the student with an opportunity to perform statistical
analysis of an economic problem with the purpose of acquiring experience
in identifying and solving empirical research problems.
(2) To provide the student with the opportunity to use LIMDEP.
PROJECT DESCRIPTION:
You will estimate an earnings function from the data set called 'NLS20.BIN'.
This data set is a subset of the National Longitudinal Survey (NLS). You
have also been given a copy of two articles which estimate an earnings
function to help get you started. You are to determine the functional form,
the necessary variables, etc. You must read additional professional literature
concerning the earnings function. There is a CD rom of the Journal of Economic
Literature in the Nimitz Library which permits you to "search" for relevant
articles. If you decide that you need additional variables to the ones
provided, you may ask if these variables exist and can they be added/substituted
into your data set. You will estimate the function to the best of your
ability. You must verify/identify the statistical problems with your results
and you will attempt to solve the statistical problems you encounter.
PAPER FORMAT:
I. Introduction: Briefly discuss the hypotheses tested, the importance
of the hypotheses, and the results.
II. Model: Describe how you approached the problem and why you
took that approach. Inadequate reasoning is that you found the approach
in a textbook, article, etc.
III. Results: The results of your research; the statistical problems
that you encountered; what you did to solve the problems; copies of your
LIMDEP output, etc.
IV. Conclusions
V. Computer Output: DSTAT on variables used in the regression;
Correlation matrix of variables used in the regression; Regression output,
etc.
VI. Bibliography
COMMENTS:
1. Your paper will be graded on style, organization, and content. You
may use either footnotes or endnotes; it is your choice.
2. Do research to find the best approach to investigate your hypotheses.
THINK about the problem; do not just plug and chug.
3. If you encounter statistical problems, you must attempt to solve
them not merely identify the existence of the problem.
4. Remember YOU must use a wordprocessing program to produce the project
paper.
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