Economics/Business Economics 401

Independent Study Techniques

Fall 2004

 

 

Dr. Barb Burnell                                                                     e-mail: bburnell@wooster.edu

Office: Morgan 213                                                                                         Phone: x-2417

 

 

Goals of Course

 

The College of Wooster prides itself on the fact that all of its graduates have a demonstrated capability to conduct independent research in their major field.  It is during this course that the student is first exposed to the practical techniques for successfully accomplishing such a research project.  Specifically, the goals of the course are twofold:  first, to train students in social scientific methodology, use of library resources, computer operation and elementary econometric techniques, and research writing skills; second, to assist the student in applying this aforementioned training to a project of his/her own choosing, culminating in a research paper at the end of the course.

 

The knowledge we hope is gained through the course is, of course valuable in its own right; a professional economist is expected to have these skills.  But we also presume that the training provided by Econ/Buec 401 will make the centerpiece of the student's undergraduate education, the Senior Thesis, an easier, more sophisticated, and more meaningful undertaking.

 

 

Expectations of Students

  1. Attend all lectures -- advisors in both Junior and Senior Independent Study will expect you to be familiar with the material.
  2. Think long and hard about the concepts and issues presented -- true understanding does not come merely by listening.
  3. Question/Challenge concepts and issues that you feel need more clarification or support--the course is for your benefit.
  4. Get to work IMMEDIATELY on your I.S. paper at the beginning of the semester.

 

 

Code of Academic Integrity

            Students are, of course, expected to uphold the Code as outlined in the Scot's Key.  Evidence to the contrary will results in an F for the course.  For clarification, however, we note other instances of code violations that are most likely to arise during 401:

 

1.     Assisting other students with any of their homework assignments, providing "hints" or comparing answers on assignments.

 

1.     Gathering data, running regressions, and/or writing portions of the paper associated with 401 on behalf of any other student(s).

 

1.     Plagiarism.  (This is described fully in your I.S. Handbook.)

 

Evidence of plagiarism or other infractions of the Code of Academic Integrity will result in an F for the course.  No questions asked, no explanations desired.

 

 

Prerequisites

Econ 110 must be completed with a C- or better, and the student must have completed or be concurrently enrolled in Econ 210.  There are no exceptions to this rule.

 

 

The Junior Independent Study Paper

We expect each student to produce a Junior I.S. paper, as both a means for "learning by doing" the various skills we will be teaching in the course, and also as an end in itself:  a chance to empirically investigate an issue of interest to the student.  Insofar as we want this paper to be an opportunity for the student to develop library, methodological, and econometric skills, we are requiring that the paper focus on the empirical testing of a hypothesis using econometric techniques.  Given the nature of the economics and business world today, every student should have a firsthand familiarity with conducting basic econometric research.

 

 

Specifically, the Junior I.S. paper must follow this format:

 

Section 1.        Introduction/Background.   Show background to problem/issue being analyzed and why it is of importance.  A specific statement of your hypothesis should be included.

 

Section 2.        Theoretical  Framework. What theoretical frameworks/models need to be spelled out to establish the causal relationships of your hypothesis?

 

Section 3.        Review of Previous Empirical Research.  Critically review existing work relevant for your work to show what has/hasn't already been done; show shortcomings of work which yield guidelines for your research/model.

 

Section 4.        Specification of Empirical Model.  Define/operationalize variables used; specify form of econometric model and what estimation techniques should be used; describe data used; explain how hypothesis will be tested.

 

Section 5.        Empirical Results.  Discuss econometric problems and how they may influence results; present regression results and interpret them; what is the result of hypothesis test(s)?

 

Section 6.        Conclusions/Implications.   Relate results to previous research; what does it mean? Why is it important?  Are there policy implications?  Suggest areas of further research.

 

Note:               The computer printout upon which reported results are based must also be included as an appendix to the paper.

 

 

In other words, we expect a paper comparable in format, purpose and length to an empirical study in one of the economic journals.

 

Papers must be typed, double-spaced, in a stylistic manner outlined in the Economics I.S. Handbook.  Papers are normally expected to be approximately 35 pages.

 

The grading of the Junior I.S. paper (with a letter grade) will be based on the criteria established in the Economics I.S. Handbook, and as explicated by your advisor.  More specific suggestions, explanations, and expectations for the Junior I.S. paper will be provided by your specific advisor.  For answers to some frequently asked questions, please see the DepartmentÕs website at: http://www.wooster.edu/economics/archive/isfaq.html

 

 

The Junior Independent Study Advisor

 

After the student submits a topic proposal by the beginning of the second week, s(h)e will be assigned to an advisor with appropriate expertise.  We will try to honor student preferences as much as equalization of faculty loads will allow.  Advisor assignments will be posted by the middle of the second week.  After advising assignments are posted, see your advisor immediately to set up a regular WEEKLY appointment.  Keep these appointments without exception!

 

Your advisor will help you formulate your hypothesis and answer questions that arise as you read the literature.  The advisor will also help in undertaking empirical tests.  The advisor alone will assign a letter grade for the Junior I.S. paper described above.

 

Your lecturer in the seminar portion of the course will also be available, of course, to answer any general questions concerning methodology, library, computer, or econometrics.

 

 

Course Assignments

 

1.     Attend ALL class sessions.

 

2.     Hand in completed assignments at the beginning of the class period indicated on the syllabus.  All assignments, along with any course announcements, are available on Blackboard.

 

3.     Junior Independent Study Paper.

 

4.     Meeting all deadlines given in syllabus.

 

 

Blackboard

We will be using the Blackboard course management system in this course.  Students are expected to register for this during the first week of class.  All assignments, readings and handouts will be available from this source.

 

 

Course Grade

            The basic course grade will consist of the following components:

 

                        Junior Independent Study Paper                                 70%

                        Class Presentation on Conceptual Hypothesis            5%

                        Class Presentation on Empirical Model                       5%

                        Assignments* (Total of 4)                                          5% each (total 20%)

 

      *Assignments that are due on days we do not meet as a class, should be put in my mailbox or submitted electronically by noon the day it is due.

 

 

 

            In addition, this basic grade may be LOWERED BY ONE QUALITY POINT (e.g.,    from B+ to B) FOR ANY AND ALL OF THE FOLLOWING:

 

a.     every absence from class, after the first

b.     failure to turn in Preliminary Topic on time.  (See due date)

c.     failure to turn in ACCEPTABLE Conceptual Hypothesis on time.  (See due date)

d.     failure to turn in ACCEPTABLE Operational Hypothesis on time.  (See due date)

e.     failure to be prepared on the day you are to present.

 

Also, the paper component of the grade will be lowered by a quality point for every 24 hours late (or fraction thereof) on turning in the Junior Independent Study paper.

 

 

Presentations:  Each student will give two presentations over the semester Š one on his/her conceptual model, and one on his/her operational model. The dates are noted on the schedule below, and the order of presentations will be determined shortly beforehand.

 

Course Schedule:  Following is a tentative course schedule for this class. You should keep Noon MWF open even if the initial schedule does not indicate we plan to meet that day.

Econ/Buec 401

Independent Study Techniques

Fall 2003

 

Week/Day/Date                     Reading or other                               Topic

                                                Assignment

                                                                                                                                                             

1/Mon. Aug. 30                                                                    I. Hints for Beginning IS

A.    Finding a Topic

B.    Flow Chart

C.    Review Handbook

 

1/Wed. Sept. 1                                                                           D.  Finding Articles

                                                                                                EconLit

                                                             http://www.wooster.edu/library/resources/title.html

                                                                                                NBER

                                                                                                     http://papers.nber.org/papers.html

               JSTOR

                                                                         http://www.wooster.edu/library/resources/title.html

                                                                                                            WoPEc

                                                                                                    http://netec.mcc.ac.uk/WoPEc.html

                                                                                                            Ingenta

   http://www.ingenta.com/isis/browsing/BrowseJournals/ingenta;jsessionid=5cni5n0l4ir8s.circus  

 

1/Fri. Sept. 3                                                                              Open for questions (not mandatory)

 

                                                                                            

2/Mon. Sept. 6            Preliminary topic                          No class -- (put assignment in my

                                    due at Noon                                                         mailbox)

                                                                                                  

 

2/Wed. Sept. 8            Read Krugman*,                              II. Social Scientific Method

Leamer*, Nelson*                            A. What is Social Science?

                                                         B. Overview of Methodology

C. Positive vs. Normative    

     Economics                      

                                                                                             Discuss three articles

                                         

2/Fri. Sept. 10                                                                      III. Types of Hypotheses

                                                                                             Conceptual Hypotheses

A.    Functional Form Notation

B.    Definition of Model Types

 

3/Mon. Sept. 13                                                                   Types of Hypotheses conÕt if necessary              

 

3/Wed. Sept. 15                                                                   No class

                                                                                                                       

3/Fri. Sept. 17             Assignment* #1 due at Noon:      No class -- (put assignment in my

                                    Identifying hypotheses,                                         mailbox)          

                                    concepts and model types                  

 

Week 4/ Sept. 20,22,24                                                        No class

                                                                                            

5/Mon. Sept. 27                                                                   Library Resources:  Data Acquisition

                                                                                                  

5/Wed. Sept. 29          Assignment #2 due:                       Library Resources:  Data Acquisition

                                    Acceptable conceptual                       

                                    hypothesis                                           

 

5/Fri. Oct. 1                                                                          Class Presentations on

                                                                                                   Conceptual Hypothesis

 

6/Mon. Oct. 4                                                                       Class Presentations on

                                                                                                   Conceptual Hypothesis

 

6/Wed. Oct. 6                                                                       Class Presentations on              

                                                                                                   Conceptual Hypothesis

                                                                                                  

6/Fri. Oct. 8                                                                          No class

 

7/Mon. Oct. 11                                                                     III. Types of Hypotheses, conÕt          

                                                                                             Operational Hypotheses

A.    Types of Measures for Variables

B.    Aggregated vs. Disaggregated Variables

C.    Variable Terminology in Different

         Models

                                                                                                                       

7/Wed.Oct. 13             Read Regression Review                  V.  Empirical Testing of Operational

                                    Handout (on Blackboard)                       Hypotheses

A.    General Issues in Empirical Testing

B.    Specifying Linear Regression       Equations

C.    Specifying Non-Linear

Regression Equations

D.   Probability Models

 

7/Fri. Oct 15                                                                         Continuation of Section V material if necessary

                                                                                                                                                           

8/Mon. Oct. 18            Fall Break                                            

 

8/Wed. Oct. 20                                                                     VI. SHAZAM Hints/Reminders

                                   

8/Fri. Oct. 22                                                                        No Class

 

9/Mon. Oct. 25            See Regression Review Handout      VIII.  Econometric Problems Review

                                    Section IX                                              A.  Specification Error

                                                                                                   B.  Multicollinearity

                                                                                                   C.  Autocorrelation                          

                                                                                                   D.  Heteroskedasticity                     

                                                                                                   E.  Stationarity and Cointegration

                                                                                                   F.  Simultaneous Equation Bias

 

9/Wed. Oct. 27                                                                     Econometric Problems Review

                                                                                                   continued if necessary

 

 

9/Fri. Oct. 29 through 13/Nov. 12                                        No class unless notified

 

 

11/ Monday Nov. 1    Assignment #3 due at Noon:        No class Š (put assignment in my

                                    Operationalized hypothesis                                mailbox)

 

12/Friday Nov. 12     Assignment #4 due at Noon:        No class Š (put assignment in my

                                    Model Results                                                        mailbox)

 

13/Mon. Nov. 15                                                                  Class Presentation on Empirical Models

 

13/Wed. Nov. 17                                                                  Class Presentation on Empirical Models

 

13/Fri. Nov. 19                                                                     Class Presentation on Empirical Models

 

                                    No more classes unless necessary

                                                                                            

 

MONDAY, December 6  FINAL INDEPENDENT STUDY PAPER DUE

IN ADVISOR'S HANDS NO LATER THAN NOON

 

 

*Pdf files of articles and the assignments are on Blackboard.