24 Jun EFFECT OF LIFE INSURANCE SPENDING ON LIFE EXPECTANCY (ECONOMETRIC)
Paper details: Require STATA software and Panel data regression (Fixed effect model both time invariant and state invariant) Using econometric techniques from this course. Your paper will be approximately 15-20 pages long and explain the research question, data, estimation strategy, and results. You should be able to write your research question as “the effect of A on B”. Also, I expect that the econometric technique used in your research would be more sophisticated than simple OLS. The topic has been chosen as the effect of life insurance spending on life expectancy. – Abstract: summary of your paper, less than 7 sentences – Introduction (Section 1, 2-4 pages): motivation of your research, objectives or contribution of you paper, what methods I will use and why that method is good (just brie×y), summary of your results (very brie×y, intuitively), literature review (focusing on what is the difference between your paper and other papers), structure of your paper (section 2 discusses **, section 3 is about &&, …) – Section 2. Data, Descriptive Statistics: Explain your data in detail, data source, how they were collected, were there some missing values?if yes, how did you deal with them?, any possibility of measurement errors?,why the dataset is good for answering your question, tables of mean, standard errors and interpretation of them, some simple OLS results (correlation) and plot, discussing omitted variable bias, other endogeneity issues, you can motivate more sophisticated estimation methods to overcome the endogeneity issues and this will be a good bridge to Section 3. – Section 3: Main estimation results: discussion of your model, variables, explanation of your notation, why your method is valid in terms of 5 threats to internal validity, if you are using panel data, you need to discuss if the omitted variables are time invariant or state invariant. if you are using IV, you need to discuss validity of your IV intuitively, report regression results using big regression tables (comparing several speciÖcations), use interaction terms to capture heterogeneity effects of x1 on y, intuitively discuss your results. – Section 4, Conclusion summary of what you did and your results, interesting questions for further investigation In addition to the paper, please insert the regression result and snapshot when it is appropriate.
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