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Economics Positive or Negative Effect Paper

Economics Positive or Negative Effect Paper


1. All variables must be real (not nominal) dollars, and convert nominal dollars to real dollars using GDP deflator.

2.Use two different dependent variables, real per capita gdp and the growth rate of real per capita gdp, so you will run two regressions.

3. Explain if each control variable would have a positive or negative effect on the dependent variable by using a paper or papers you read, and cite the paper(s) with page numbers.

4. Include another control variable, namely educational attainment, and get data from

A new data set of educational attainment in the world, 1950–2010

5. Use annual data, not quarterly.

6. Include year trend as another control, because macro variables change over time even without controls you include.

7. Structure your final report as follows:

    1.general report

    2.economic analysis

2-A. introduction: discuss the importance of the issue you analyze in relation to your employer’s


2-B. hypothesis: discuss the rationale for your hypothesis, and rationale for other control variables.

2-C. data: explain your data and variables, and include summary statistics and explain it.

2-D. empirical analysis: regression results and the interpretation of the results

2-E. implications: discuss the implications of empirical analysis for your employer’s business

2-F. shortcomings: discuss the shortcomings of analysis such as data limitation


Include educational attainment in #4

Explain in the paper how you calculated real variables (GDP, FDI,…) or converted nominal variables to real variables, as in #1

You can get education data for the US for the past 30 years from OECD

Adult education level · OECD – Average, Below upper secondary, 2021: 19.9 % of 25-64 year-olds · OECD – Average, Tertiary, 2021: 39.9 % of 25-64 year-olds · OECD –

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