Posted: July 1st, 2015

Econometrics : Investigate relationship between unemployment benefits and unemployment

Investigate the relationship between unemployment benefits and unemployment. The aim of your analysis will be to prepare a report that examines whether higher unemployment benefits result in higher unemployment. You will have to collect data (micro or macro), choose a theoretical framework and appropriate economic modelling techniques.

a. Outline:

Provide an outline of your topic. This includes an introduction and a short review of evidence from previous literature and the questions you will address in your research (500 words).

b. Data:

Describe the data you have collected for your study. Please bear in mind that you will most likely require more than just two variables as you will have to control for other factors than unemployment benefits that may affect unemployment. Describe your data set with regards to how the data are collected and how unemployment and benefits are measured. Use charts and summary tables. (400 words)

c. Method:

Outline the theoretical framework that you will use as well as the econometric technique. (300 words)

d. Results:

Explain the results of your econometric analysis. Provide results tables and assess the significance of your explanatory variables. Detail how you have addressed potential issues with your modelling (e.g. heteroscedasticity). Critically assess the limitations of your analysis. (1000 words)

e. Conclusions

Summarise your results and contrast it to the findings from previous studies. Explain the potential policy implications of your research. (300)