Econometrics Research Topics and Term Paper Ideas

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One of the most difficult things about being an undergraduate student in economics is that most schools require that students write an econometrics paper at some point in their studies. Econometrics is essentially the application of statistical and mathematical theories and perhaps some computer science to economic data. The objective is to develop empirical evidence for economics hypotheses and to predict future trends by testing economics models through statistical trials.

Econometrics assists economists in analyzing large sets of data to unveil meaningful relationships among them. For instance, an econometrics scholar might attempt to find statistical evidence for answers to real-world economics questions like, "does increased education spending lead to higher economic growth?" with the help of econometrics methods.

The Difficulty Behind Econometrics Projects

While certainly important to the subject of economics, many students (and particularly those who do not particularly enjoy statistics) find econometrics a necessary evil in their education. So when the moment arrives to find an econometrics research topic for a university term paper or project, they are at a loss. In my time as an economics professor, I have seen students spend 90% of their time simply trying to come up with an econometrics research topic and then searching for the necessary data. But these steps need not be such a challenge.

Econometrics Research Topic Ideas

When it comes to your next econometrics project, I have you covered. I've come up with a few ideas for suitable undergraduate econometrics term papers and projects. All the data you will need to get started on your project is included, though you may choose to supplement with additional data.

The data is available for download in Microsoft Excel format, but it can easily be converted to whatever format your course requires you to use.

Here are two econometrics research topic ideas to consider. Within these links are paper topic prompts, research resources, important questions to consider, and data sets to work with.

Okun's Law

Use your econometrics term paper to test Okun's Law in the United States. Okun's Law is named for American economist Arthur Melvin Okun, who was the first to propose the existence of the relationship back in 1962. The relationship described by Okun's Law is between that of a country's unemployment rate and that country's production or gross national product (GNP).

Spending on Imports and Disposable Income

Use your econometrics term paper as an opportunity to answer questions about American spending behaviors. As incomes rise, how do households spend their new wealth and disposable income? Do they spend it on imported goods or domestic goods?