Paper Rubric
Part 1: Theory & Hypotheses (Complete by March 6).
Discuss the basic assumptions economists make when they model consumer behavior;
Describe and predict the impacts of the determinants on the quantity of beer that individual households will demand. Explain your rationale for each hypothesis using marginal utility theory.
Propose a methodology for testing your hypotheses; describing how you would collect your data.
Reviewing the literature is an important part of the scientific method. Several studies investigate the relationship between demand for beer and its determinants. Here are a few examples to help you:
Heien, D., & G. Pompelli. 1989. “The demand for alcoholic beverages: economic and demographic effects.” S. Econ. J. 759-770.
Hogarty, T. F., & K. G. Elzinga. 1972. “The demand for beer.” Rev. Econ. & Stat. 54.2: 195-8.
Manning, W. G., L. Blumberg, and L. H. Moulton. 1995. “The demand for alcohol: the differential response to price.” J. Health Econ. 14.2: 123-148.
Part 2: Data Analysis & Interpretation
Refer to the linked file “DEMAND.xlsx”, which contains data for the quantities consumed by 100 households of beer; prices of beer, liquor and “other related goods”; and consumers’ incomes. Regression analysis was performed on the variables to reveal the following predicted linear demand function:
Q ^beer = 70.524 – 29.533(Pbeer) – 4.467(Pliquor) + 9.786(Pother) + 3.124(Income).
Report and interpret the coefficients of the estimated demand equation for beer.
For a consumer with an average income, and facing average prices calculate the following:
the estimated price elasticity;
the estimated cross-elasticity of beer with liquor;
the estimated cross-elasticity of beer with “other goods”;
the income elasticity of beer.
Interpret the economic significance of your answers for each of the above calculations.
Final Draft: Syntheses
Revise Parts I and II based on the comments I gave you in Blackboard.
Combine parts 1 & 2 into a cohesive report with an introduction and conclusion. Length: no more than 6 double-spaced pages in 12-point Times New Roman font and one-inch margins.
Add a simple title page (not part of page count) with an executive summary of 200-words or less.
Grading of the paper will follow the following rubric:
Category Fails to Meet Expectations Meets Expectations Exceeds Expectations
Formulate a Question (10%) Fails to establish the importance of the research question to economics. Establishes the importance of the question. Generally organized. Motivates the question in a way that establishes importance and captures interest.
State the Hypotheses (20%) Does not clearly describe the hypotheses using economic theories and concepts. Clearly states a hypothesis using economic theories and concepts. Clearly describes competing hypotheses based on economic theories and concepts.
Experimental Design (20%) Does not describe an experiment to test the hypothesis. Describes a simple experiment that would test the hypothesis. Describes a thorough and complex experiment to test competing hypotheses.
Data Analysis (40%) Presents a vague or inaccurate answer to the question. Analyzes the data without major inaccuracies. Gives a comprehensive answer, both numerically and in economic significance.
Writing quality (10%) Frequent grammar/spelling errors. Tone is unprofessional. Few grammar/spelling errors. Tone is professional. Paper is easy to read and has a professional tone throughout.
Paper Rubric
Part 1: Theory & Hypotheses (Complete by March 6).
Discuss the basic assumptions economists make when they model consumer behavior;
Describe and predict the impacts of the determinants on the quantity of beer that individual households will demand. Explain your rationale for each hypothesis using marginal utility theory.
Propose a methodology for testing your hypotheses; describing how you would collect your data.
Reviewing the literature is an important part of the scientific method. Several studies investigate the relationship between demand for beer and its determinants. Here are a few examples to help you:
Heien, D., & G. Pompelli. 1989. “The demand for alcoholic beverages: economic and demographic effects.” S. Econ. J. 759-770.
Hogarty, T. F., & K. G. Elzinga. 1972. “The demand for beer.” Rev. Econ. & Stat. 54.2: 195-8.
Manning, W. G., L. Blumberg, and L. H. Moulton. 1995. “The demand for alcohol: the differential response to price.” J. Health Econ. 14.2: 123-148.
Part 2: Data Analysis & Interpretation
Refer to the linked file “DEMAND.xlsx”, which contains data for the quantities consumed by 100 households of beer; prices of beer, liquor and “other related goods”; and consumers’ incomes. Regression analysis was performed on the variables to reveal the following predicted linear demand function:
Q ^beer = 70.524 – 29.533(Pbeer) – 4.467(Pliquor) + 9.786(Pother) + 3.124(Income).
Report and interpret the coefficients of the estimated demand equation for beer.
For a consumer with an average income, and facing average prices calculate the following:
the estimated price elasticity;
the estimated cross-elasticity of beer with liquor;
the estimated cross-elasticity of beer with “other goods”;
the income elasticity of beer.
Interpret the economic significance of your answers for each of the above calculations.
Final Draft: Syntheses
Revise Parts I and II based on the comments I gave you in Blackboard.
Combine parts 1 & 2 into a cohesive report with an introduction and conclusion. Length: no more than 6 double-spaced pages in 12-point Times New Roman font and one-inch margins.
Add a simple title page (not part of page count) with an executive summary of 200-words or less.
Grading of the paper will follow the following rubric:
Category Fails to Meet Expectations Meets Expectations Exceeds Expectations
Formulate a Question (10%) Fails to establish the importance of the research question to economics. Establishes the importance of the question. Generally organized. Motivates the question in a way that establishes importance and captures interest.
State the Hypotheses (20%) Does not clearly describe the hypotheses using economic theories and concepts. Clearly states a hypothesis using economic theories and concepts. Clearly describes competing hypotheses based on economic theories and concepts.
Experimental Design (20%) Does not describe an experiment to test the hypothesis. Describes a simple experiment that would test the hypothesis. Describes a thorough and complex experiment to test competing hypotheses.
Data Analysis (40%) Presents a vague or inaccurate answer to the question. Analyzes the data without major inaccuracies. Gives a comprehensive answer, both numerically and in economic significance.
Writing quality (10%) Frequent grammar/spelling errors. Tone is unprofessional. Few grammar/spelling errors. Tone is professional. Paper is easy to read and has a professional tone throughout.