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Economic research begins with a question. With that question in mind, the researcher begins a review of the relevant literature. This step is important
because the researcher needs to know what has already been done in terms of questions asked, methodology used, assumptions made, data used,
and results. Most economic research is built on the work that has already been done by someone else. Once a literature review has been done, the
researcher can develop a proposal for their own studies. That proposal may involve asking a different question, using a different methodology or
model, testing the affect of different assumptions, using a different set of data to test the model, or extending the results into new areas.
This assignment will give you a chance to experience some of that process. Your job will be to select one of the articles provided to you, review it, and
develop a proposal for research. Your audience is someone that is familiar with economic theory but has not read the article. Thus, your review needs
to include a general discussion of the research questions, methodology, data used, and results. This is not a matter of rewriting the abstract for the
article. Once you have completed your review, you should develop a proposal for research based on this article. Note that you are not expected to
carry out that proposal for this assignment.
Sample Solution
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