Working on Various Projects

Choose one of the three projects described below for your paper.
Try different specifications for your model, for example, you may want to try a double-logarithmic model as well as a model in levels. Consider including squares of variables, including interaction terms, or creating additional dummy variables if that should be a good idea. Examine your dataset carefully; for example, perhaps you will want to delete
observations that you think do not make sense.

Try to be creative and critical. Try to do things like add extra regressors if that should be possible. Sometimes relationships between variables in your dataset are very unlikely to be linear. Multiple regressions are very often more informative than simple regressions for the reasons discussed. Be aware that your instructor will only be able to judge your work on what you hand in, and not on all the work you may have done but cannot be found back in your final product. Also, take great care not to misinterpret output or draw conclusions that are verifiably incorrect.
The choice of project is an integral part of this project. You cannot excuse
a poor paper by claiming that the dataset or your project was not very fertile.
Low t-values can still make an interesting project. The point here is to do economic or social science style research; it is your job to objectively report what is suggested by the data. If you think there ought to be a relationship between y and x, but you don’t find one, then that is a perfectly fine outcome of a piece of research. Scientific research should ideally
be free of biases, and reporting unbiased conclusions in a verifiable and correct way is what science should ideally be all about.

Your paper should not exceed four double-spaced typed pages. Your paper should be typed. The four-page limit is not there to make your life difficult, but instead, the upper limit serves to limit the amount of work that you can usefully spend on this project. The idea is for you to be precise and concise.

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