Econometric model, Econometrics

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Provide a clear statement of the research topic and the underlying relationship that you are modeling. Identify the dependent variable and the independent variables (minimum of 3 independent variables) in your model. Write an equation to specify this model.  Explain the theoretical underpinnings of the model you have specified. Why is it important to study/research the relationship described by the model? Who do you think should be interested in the results?  Based on the theory, explain how each independent variable is expected to affect the dependent variable (i.e., the expected signs for the slope parameters in the model).

Describe how all the variables are defined.

If there are any explanatory variables that are qualitative in nature, define the dummy (or binary) variables that can be used to incorporate these factors into the model.

Explain what type of data you would use to estimate the model - time series, cross-section, or panel data.


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