Quiz 2
EMET8002 Semester 1 2024
Question 1 - Approximately 500 words [8 marks]
This question does not require you to undertake any analysis yourself. Rather, you are being asked to critique an existing paper on “People's Understanding of Inflation” by Binetti, Nuzzi and Stantchevan(2024). The paper is available at the following link:
https://www.nber.org/system/files/working_papers/w32497/w32497.pdf
You can download a PDF version of the paper directly, or if you are off-campus you may need to enter your ANU e-mail address on that page and it will be emailed to you (see
https://www.nber.org/papers/w32497).
Answer the following questions in your own words.
1a) What are the research questions and what data is used to test those questions? Include a discussion of the strengths and weaknesses of the data used in this paper. [2 marks]
1b) What are the main data analysis techniques used to test those research questions (from part a)? Describe at least one of those techniques in detail. [3 marks]
1c) How could the analysis be extended using a different model or technique? [3 marks]
Question 2 – Approximately 600 words [12 marks]
This question requires you to undertake your own analysis. For one of the datasets used in the computer labs this year:
2a) Identify a dependent variable that could be estimated by a binary, ordered or multinomial logit model. Which of these models would you recommend for estimating this variable?
Justify why you would choose this model over the other. [3 marks]
2b) Describe an economic research question that can be analysed with the model and the dependent variable that you chose in part (a). State your null and alternative hypotheses. Remember to back up your research question with existing literature and/or theory (2-3 references). [4 marks]
2c) Estimate a model with no more than five independent variables to test your research question from part (b). Present your findings in a Table and interpret the sign and the statistical significance of the coefficients. Do you find evidence to support your research hypothesis? Explain. [5 marks]
Include your Stata code (log file) in your assignment submission.