Assignment Task
1. Assignment task
This assignment is a form of inquiry-based learning, where your learning is motivated by a topic of
your choice and you develop a deeper understanding of this as you research it. You will need to
identify a topic that lies in the area of macroeconomics and that is of interest to you and write a
short empirical paper. A typical empirical academic paper, taking also in mind the material covered
in this module, it is suggested that includes the following:
1. Introduction: Most papers begin with an introduction that briefly describes the topic being
studied and motivates. The introduction should be written in simple nontechnical language,
with econometric jargon kept to a minimum. A reader who is not an expert in the field should
be able to read and understand the topic under investigation and the motivation for your
project. (100–150 words max)
2. Literature review and theoretical model: In this section you should describe the formal
economic theory behind the topic you have chosen to investigate. Here you include a
theoretical model and the respective mathematical model. You should discuss related empirical
work that others have done and describe other academic journal papers and their main findings
(literature review). This section will include some mathematics and economic jargon and you
can address it solely to an audience of experts in your field. (250–400 words)
3. Econometric model and data: In this section you should specify your econometric model to
be estimated (variables, specification, etc.) and describe your data including a detailed
2
discussion of their sources. You may also provide graphs of the variables employed followed by
a brief discussion. You should then discuss how you will use the data to investigate the
economic theory outlined in section 2 (justify the methodologies used in the empirical results
section). The exact form of this section might vary considerably, depending on the topic. For
instance, you may want to argue that a particular model is of interest for the study, that a
certain variable will be the dependent variable and that other variables will be the explanatory
variables (theory). Similarly, in a macroeconomic time series exercise, you may wish to argue
that your economic theory implies/suggests that your variables should be cointegrated and
that, for this reason, a test of cointegration will be carried out. (200–300 words)
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