ECON 4970 Relationship Between Unemployment Rate And Crime Rate

ECON 4970
Introduction to Research Methods
Instructor: Dr. Nazneen Ahmad
Assignment 2
Total Points: 100
Introduction to Research Methods
Instruction: Points allocated to each problem are indicated in parenthesis. Overall write up/ grammar/quality of content and organization of your work accounts for the remaining 10 points. Submit a hard copy (typed, in class) and an electronic copy of your assignment by 2.30 p.m., February 28, 2018. You will be penalized five points (out of 100) for every day your submission is late.
Read the following research proposal to answer question 1.
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This paper will discuss Okun’s Law in gap form and test the validity of the law over the long term using data from the years 1949 to 2013 by comparing the data for unemployment and gross domestic product of the United States. Using Excel, I will calculate the value for the output gap for each year as well as the unemployment gap. Then, I will use Okun’s Law to solve for omega (ω) which is as follows: ((Y-Y*)/Y*)/(U-U*) = -ω. I calculate Okun’s coefficient to be, on average, -.01. His law states that the coefficient should be around negative two (Dornbusch, Fischer and Startz). Having done a literature search, I have no doubt that Okun’s Law does not hold up over the long term, so I am confident in my results as far as confirming the overall assumptions of the law.
The data was taken from various government websites and compiled by the St. Louis Federal Reserve. The data covers the span from 1949-2013. The real gross domestic product and the real potential gross domestic product are both annual and measured in billions of chained 2009 dollars. The natural rate of unemployment (long-term) and the civilian unemployment rates were both annual and not seasonally adjusted and were given in percent form.
Historically, omega has a value of around 2.25 (Attfield and Silverstone). However, recent research, such as Fatma’s, could potentially change that value as more and more data is collected. Like other researchers, I confirm that there is a negative correlation between Gross domestic product and unemployment. Also, Okun’s law does fluctuate over time.
1.i) Circle the correct answer(s). In one sentence provide reasoning behind your answer. The write up is (5*5 = 25 points)
* Focused
The paper offers a relationship between unemployment and the gross domestic product, without too much negation from the argument.
* Organized
The arguments offered are well introduced one after the other in a professional manner such that it is quite easy to follow the argument even with the technical details included.
* Solidly developed
The development of the argument citing the content and the context integration is rather refined. The author does not just offer their argument, they also support with data from credible sources.
d) Clear, concise, and precise
e) Free of grammatical error
The piece does not also have any grammatical errors, which gives it even higher credibility scores. Grammar mistakes not...