Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied ResearchECON 312

Michael Bar

San Francisco State University

April 21, 2020

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Steps of Applied Research

1 Research (Topic) Question.2 Literature Review.3 Economic (or other) Theory.4 Data Collection and Inspection.5 Econometric (Statistical) Model.6 Statistical Analysis.7 Conclusions.

Steps Question Literature Theory Data Model Analysis Conclusions

Research (Topic) Question

The starting point of applied research project is a researchtopic/question. I advise to phrase the title as a question, andbe very specific.

A bad research title is "Labor Markets", because it is toogeneral.

A good research title "Does Higher Minimum Wage IncreaseUnemployment of Unskilled Workers?".

Steps Question Literature Theory Data Model Analysis Conclusions

Research (Topic) Question

The starting point of applied research project is a researchtopic/question. I advise to phrase the title as a question, andbe very specific.

A bad research title is "Labor Markets", because it is toogeneral.

A good research title "Does Higher Minimum Wage IncreaseUnemployment of Unskilled Workers?".

Steps Question Literature Theory Data Model Analysis Conclusions

Research (Topic) Question

The starting point of applied research project is a researchtopic/question. I advise to phrase the title as a question, andbe very specific.

A bad research title is "Labor Markets", because it is toogeneral.

A good research title "Does Higher Minimum Wage IncreaseUnemployment of Unskilled Workers?".

Steps Question Literature Theory Data Model Analysis Conclusions

Literature Review: How to Read Technical Articles?

The starting point can be a textbook, which cites seminalpapers on a particular topic.

Try to identify the famous researchers who publishedinfluential article on your topic, and look at their webpages forfurther references.

Read the introduction and conclusions of articles that are tootechnical.

Steps Question Literature Theory Data Model Analysis Conclusions

Literature Review: How to Read Technical Articles?

The starting point can be a textbook, which cites seminalpapers on a particular topic.

Try to identify the famous researchers who publishedinfluential article on your topic, and look at their webpages forfurther references.

Read the introduction and conclusions of articles that are tootechnical.

Steps Question Literature Theory Data Model Analysis Conclusions

Literature Review: How to Read Technical Articles?

The starting point can be a textbook, which cites seminalpapers on a particular topic.

Try to identify the famous researchers who publishedinfluential article on your topic, and look at their webpages forfurther references.

Read the introduction and conclusions of articles that are tootechnical.

Steps Question Literature Theory Data Model Analysis Conclusions

Literature Review: what you need to get out of an article?

Based on introduction and conclusions you should get three things:

1 What is the research question/topic?2 What is the methodology (without specific details).3 What are the main findings of the article.

Steps Question Literature Theory Data Model Analysis Conclusions

Literature Review: what you need to get out of an article?

Based on introduction and conclusions you should get three things:

1 What is the research question/topic?2 What is the methodology (without specific details).3 What are the main findings of the article.

Steps Question Literature Theory Data Model Analysis Conclusions

Literature Review: what you need to get out of an article?

Based on introduction and conclusions you should get three things:

1 What is the research question/topic?2 What is the methodology (without specific details).3 What are the main findings of the article.

Steps Question Literature Theory Data Model Analysis Conclusions

Economic (or other) Theory

Find out the relevant economic theory for the topic or the questionat hand. For example, if the topic is Minimum Wage, then it ispart of the field of Labor Economics, and the relevant theories arethe labor markets, effi ciency wage theory, search model of labormarkets, etc.

Steps Question Literature Theory Data Model Analysis Conclusions

Data Collection and Inspection

The economic theory should dictate what kind of data isneeded for the project.

Before performing any type of statistical analysis, you mustsummarize and visualize the data (summary statistics,visualization).

You must document the data sources, and the units of thedata.

Steps Question Literature Theory Data Model Analysis Conclusions

Data Collection and Inspection

The economic theory should dictate what kind of data isneeded for the project.

Before performing any type of statistical analysis, you mustsummarize and visualize the data (summary statistics,visualization).

You must document the data sources, and the units of thedata.

Steps Question Literature Theory Data Model Analysis Conclusions

Data Collection and Inspection

The economic theory should dictate what kind of data isneeded for the project.

Before performing any type of statistical analysis, you mustsummarize and visualize the data (summary statistics,visualization).

You must document the data sources, and the units of thedata.

Steps Question Literature Theory Data Model Analysis Conclusions

Econometric (Statistical) Model

The economic theory should dictate the econometric model.Each variable included in your model, must be justified on thebasis of theory.For example, to justify the inclusion of schooling in theearnings model, one can refer to the human capital theory(whereby schooling helps accumulate skills, which enhance toearning ability), as well as signalling theory (wherebyschooling serves as a signal to employers about the ability andpotential of the candidate).Describe your model mathematically. For example, multiplelinear regression model:

Yi = β1 + β2X2,i + β3X3,i + ...+ βkXk ,i + ui

Probit model:

P (Yi = 1) = Φ (β1 + β2X2,i + β3X3,i + ...+ βkXk ,i )

Steps Question Literature Theory Data Model Analysis Conclusions

Econometric (Statistical) Model

The economic theory should dictate the econometric model.Each variable included in your model, must be justified on thebasis of theory.For example, to justify the inclusion of schooling in theearnings model, one can refer to the human capital theory(whereby schooling helps accumulate skills, which enhance toearning ability), as well as signalling theory (wherebyschooling serves as a signal to employers about the ability andpotential of the candidate).Describe your model mathematically. For example, multiplelinear regression model:

Yi = β1 + β2X2,i + β3X3,i + ...+ βkXk ,i + ui

Probit model:

P (Yi = 1) = Φ (β1 + β2X2,i + β3X3,i + ...+ βkXk ,i )

Steps Question Literature Theory Data Model Analysis Conclusions

Econometric (Statistical) Model

The economic theory should dictate the econometric model.Each variable included in your model, must be justified on thebasis of theory.For example, to justify the inclusion of schooling in theearnings model, one can refer to the human capital theory(whereby schooling helps accumulate skills, which enhance toearning ability), as well as signalling theory (wherebyschooling serves as a signal to employers about the ability andpotential of the candidate).Describe your model mathematically. For example, multiplelinear regression model:

Yi = β1 + β2X2,i + β3X3,i + ...+ βkXk ,i + ui

Probit model:

P (Yi = 1) = Φ (β1 + β2X2,i + β3X3,i + ...+ βkXk ,i )

Steps Question Literature Theory Data Model Analysis Conclusions

Econometric (Statistical) Model

The economic theory should dictate the econometric model.Each variable included in your model, must be justified on thebasis of theory.For example, to justify the inclusion of schooling in theearnings model, one can refer to the human capital theory(whereby schooling helps accumulate skills, which enhance toearning ability), as well as signalling theory (wherebyschooling serves as a signal to employers about the ability andpotential of the candidate).Describe your model mathematically. For example, multiplelinear regression model:

Yi = β1 + β2X2,i + β3X3,i + ...+ βkXk ,i + ui

Probit model:

P (Yi = 1) = Φ (β1 + β2X2,i + β3X3,i + ...+ βkXk ,i )

Steps Question Literature Theory Data Model Analysis Conclusions

Statistical Analysis

Typically regression analysis, binary choice models, etc.

Present the results in publication quality tables.

Steps Question Literature Theory Data Model Analysis Conclusions

Statistical Analysis

Typically regression analysis, binary choice models, etc.

Present the results in publication quality tables.

Steps Question Literature Theory Data Model Analysis Conclusions

Conclusions

You must summarize and interpret the results of yourstatistical analysis.

You must relate the results of the statistical analysis to theresearch topic/question (closing the loop).

For example "we found strong evidence that higher minimumwage increases unemployment among low-skilled workers,especially teenagers".

Steps Question Literature Theory Data Model Analysis Conclusions

Conclusions

You must summarize and interpret the results of yourstatistical analysis.

You must relate the results of the statistical analysis to theresearch topic/question (closing the loop).

For example "we found strong evidence that higher minimumwage increases unemployment among low-skilled workers,especially teenagers".

Steps Question Literature Theory Data Model Analysis Conclusions

Conclusions

You must summarize and interpret the results of yourstatistical analysis.

You must relate the results of the statistical analysis to theresearch topic/question (closing the loop).

For example "we found strong evidence that higher minimumwage increases unemployment among low-skilled workers,especially teenagers".