The presentations of the paper will be on November 16. I am expecting the presence of the whole group during this period.

The paper will be due on November 23. There will be penalty for late submission late (as stated in the course outline).

It is expected that the comments that were raised in the first milestone be corrected in this version.

METHOD

In the method part, it is expected that you explain the functional form you are selecting and the kind of violation you are expected to observe. This discussion should be based on the literature available.

RESULTS

Tests related to the violation of the linear model.

In your paper, it is expected that discuss, test (when appropriate) and correct all the major violations of the linear regression model. It should include:

·        
Functional form

·        
Inclusion of irrelevant variables

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Omitted variables

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Heterosckedasticity

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Autocorrelation (spatially or temporally)

·        
Endogeneity

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Multicollinearity

 

Even if your model does not violate one hypothesis, you should explain why it is irrelevant. When you test, you explain the test you are doing, the null hypothesis of the test, the conclusion and the correction.

 

It is expected that you produce the plot of each independent variable individually with the dependent variable and perform it again with the residual of the regression

 

Regression results and analysis

This section should explain the nature of the relationship between the dependent variable and the independent variable. For every variable, it is expected that you explain the unit increment. For example: it is a “one-unit increment in the independent variable leads to a 0.4 increase in the dependent variable”, or a percentage change, etc. It is expected that you state if the sign was expected and the implication of the relationship (or no relationship) observed.

 

 

CONCLUSION

The conclusion should recall the main objective of your paper and explain the conclusion that you have reached. It should also explain what are the implications how the economic agents can be affected by the results you reached. A short paragraph about the experimental limitations and future research is deserved. 

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