Homework answers / question archive /   Problem Set 3: Term Project I Term Project I (written presentation): Due November 19, 2021 For this problem set, you will replicate a published paper   The purpose of this exercise is to construct and calibrate/estimate a model

  Problem Set 3: Term Project I Term Project I (written presentation): Due November 19, 2021 For this problem set, you will replicate a published paper   The purpose of this exercise is to construct and calibrate/estimate a model

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Problem Set 3: Term Project I

Term Project I (written presentation): Due November 19, 2021

For this problem set, you will replicate a published paper

 

The purpose of this exercise is to construct and calibrate/estimate a model. You may use Stata, Matlab, R, Python, or an equivalent to tackle the problem.

 

Replication of an empirical research paper. Choose a research paper and replicate at least one of the main numerical results and write a project report. The objective of this exercise is to provide you with experience in applying the statistical and econometric methods examined in this course.

 

The final report should run about 2-5 pages (double-spaced) and should not contain raw computer output. Submit your report and your complete log file (raw computer output) from Stata (or other programming software) separately.

 

Replication

Choose a research paper and replicate at least one of its main numerical results, and write a project report. The objective of this exercise is to provide you with experience in applying the statistical and econometric methods examined in the class.

The focus of your report should not be to calculate many numbers, nor to perform a long series of tests, but rather to report something about some interesting parameter(s). Throughout the report, write in your own words. The report will be evaluated with respect to clarity of exposition, thoroughness of description of the data and methods, and thoughtfulness in interpreting results. Good writing (e.g. conciseness) also carries weight. Be sure to include the title of the article that you replicate.

 

Grading scheme: Total 10 points

–Statement of the objective of the project. (1 point)

–Indication of the estimation method to be used. (1 point)

–Description of your data source, including approximate sample size. (1 point)

–Specification of a central parameter whose magnitude you interpret, and the hypothesis that you test. (1 points)

–Thoughtfulness in interpreting results (2 points)

–Completeness of the replication (if you choose to submit your original work, I will grade based on appropriateness of the method used to answer the question) (2 points)

–Writing (2 points)

–If you successfully replicate the results, explain which part was the most challenging for you. If you cannot completely replicate, explain what prevented you from doing so.

Example

Replication of "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution"(Application of the IV method)

Table(s) to replicate: Table 1

Find the data and the code (the zip folder named under "8_FrackingRevolution") from the subfolder "Data set."

Here are the steps:

1) Download the data set and extract the zip file.

2) open "MS_AER_2015_1326" do file

3) erase the following command (line 9 in the original do-file)

cd "D:\Dropbox\FrackingJobs\Paper\AER_Final_Submit\Data and Code"

4) change the location of the directory by typing

cd "[your computer location name]\Downloads\Data and Code"

For example, in my computer, the location is:

cd "C:\Users\atanaka\Downloads\Data and Code"

Note: You can find the location name by looking up "Properties" (Right click in your folder and click "properties" to display the folder location)

5) In Stata, install packages by typing the following commands:

ssc install outreg2

ssc install coefplot

ssc install xtivreg2

ssc install ivreg2

6) Run a do-file "MS_AER_2015_1326"

Whenever you hit an error message, try to download a package by typing "ssc install [package name]"