Economic Modelling

Select an economic issue currently in the news.
1. Identify an empirical academic paper which addresses this issue. (10 marks)
2. Describe the theoretical economic model that the authors use to explain this issue. (20 marks)
3. Identify the endogenous and exogenous variables in the model. (20 marks)
4. Describe the econometric model used by the authors to analyse the issue. (20 marks)
5. Discuss the issues that could arise in using this particular econometric model to analyse the issue.(30 marks)
(learning outcome: (b) Apply appropriate modelling methods to the analysis of economic issues )
(1500 words) 100 marks in total
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