33105 Advanced Econometrics: Theory & Applications

General information

This coursework accounts for 50% of your final mark.

The coursework is an individual piece of work. You are required to write your    own answers and cannot work jointly. All submissions will be routinely checked for plagiarism. [PlagiarismPolicy]

The deadline for the submission of the coursework is 15 Dec 2022 by 12:00:00 (12 noon).

The coursework must be submitted via Canvas in pdf format.

The coursework should not be longer than 2,000 words.

Figures and tables do not count towards the word limit.

Copying and pasting Stata output (except for graphs and figures) is not

acceptable. You should create properly formatted tables.

Equations count towards the word limit.

You may draw on the existing literature to support your discussion. Any external sources consulted for this project should be referenced correctly.

An Appendix should be attached at the end of the essay that will contain the

Stata commands used to obtain the results. The Appendix does not count

towards the word limit.

How to do well

Perform the appropriate quantitative analysis. Investigate the structure of your data set and think carefully which methodology and which variables you are      going to use.

Perform statistical tests to support your results and empirical approach if

needed.

You might use tables and graphs to develop and justify your empirical strategy.

Present your tables clearly, provide a detailed and thorough analysis of all the      findings (without going over the word limit) and discuss whether they are precise or not.

Submit a well organised and detailed Stata code.

Submit a piece of work that is well written, with no typographical or grammatical mistakes, well organised and well formatted.

Assignment

In this coursework we are interested in investigating (A) the returns to education for a   sample of American workers and (B) the relationship between unemployment and          economic growth in the UK. For Part A you should use the data set nlsy1998.dta and for Part B you should download the required data from the World Bank data portal. Please answer both questions below and enclose your Stata do-files with comments.

A.   Returns to Education. [50% - 1000 words]

The data set nlsy1998.dta contains data drawn from the National Longitudinal Survey of Youth for the year 1998. Develop an empirical strategy to estimate the returns to             education for individuals in this sample. Explain and justify your strategy carefully, then  implement the strategy. Test whether there is any difference in the returns to education by gender, by race, and by sector. Present tables with your results and discuss your          findings and any limitations of this analysis.

B.   Health, Education and Economic Growth. [50% - 1000 words]

Retrieve the required data from the World Bank Open Data portal or the OECD data         portal (https://data.worldbank.org/orhttps://data.oecd.org). Use as many time              periods (data can be available at monthly, quarterly or annual frequency) as you deem    necessary. Develop an empirical strategy to explain the relationship between Health,       Education, Unemployment and Economic Growth in a country of your choice (remember that the sample size is important in time series) . Explain and justify your strategy              carefully in the light of the underlying theory of Time Series Econometrics, then                 implement the strategy. Present tables with your results and discuss your findings.

Module Learning Outcomes:

In this assessment the following learning outcomes will be covered :

LO 1. Demonstrate systematic knowledge and understanding of econometric methods and tools and their application to specific problems.

LO 2. Conduct complex empirical econometric investigations and interpret their results. Grading Criteria:

A good answer will:

• Perform the appropriate quantitative analysis in each of the problems.

• Provide a detailed and thorough analysis of the quantitative analysis and all the findings, without going over the word limit.

• Provide a well organised and detailed Stata code.

• Be  well  written,  well  structured,  with  no  typos,  grammatical  mistakes,  or formatting errors.