Assignment Requirements

For the term paper, you must propose a policy evaluation, i.e.,

– choose a policy (either real or hypothetical)

– consider some change to that policy (again, real or hypothetical)

– choose an outcome of interest

– explain how you would estimate the causal effect of that policy change on the outcome

The paper should be no more than 10 pages, 12pt, double-spaced.

Your paper should:

1. Clearly describe the policy you are considering (how does it work? what is the nature of the policy change?)

2. Clearly describe the outcome you are considering (what is it? how is it measured?)

3. Explain why it is interesting/important to know how/whether this policy change affects the outcome you have chosen

4. Use economic reasoning to predict the likely effect of the policy change on the outcome you have chosen,(e.g., supply & demand, wage&labour etc.). If this is ambiguous (e.g., because competing theories predict different effects), explain why.

5. Clearly explain how you would evaluate the effect of the policy change on the outcome you have chosen (what data would you use? what model would you estimate?)

6. Provide some justification for your choice of method (why would you use these data? why would you estimate this model? how do these data & this method identify the effect of the policy change on the outcome you’ve chosen?)

7. Clearly cite all sources. If any idea in your paper originates from somewhere other than your own brain, you must clearly indicate where the idea comes from. Failing to do so will be treated as academic dishonesty.

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