US Trade Deficit Econometric Analysis Subject:
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It can be any topic, but US Trade Deficit is the default.
Your research project must have a number of sections, such as:
The Econometric Model of Trade Deficit
Interpretation of Estimated Results
Your introduction may start with a motivation of why it is important to study the causes of trade deficits in the USA. Your motivation part should not exceed a page.
Some key macroeconomics variables that directly and indirectly affect US trade deficits are:
US consumer price index
US exchange rate
US government spending
prices of imported goods
stock price index
US job market
Therefore, in the introduction, you can mention what macroeconomic variables you have chosen as independent variables/regressors in your long-linear regression model. In the introduction, you should also very briefly mention why and how you expect these macroeconomic variables to affect US trade deficits.
The last line of your introduction should be the following:
The rest of the research paper is organized as follows: section two reviews literatures of US trade deficits; section three develop a log-linear econometric model to understand the causes of US trade deficits; section four discusses the estimated results of the econometric model; and section five concludes.
2. Literature Review
In this section, you simply review and summarize what other researchers and policymakers found and said about trade deficits in the USA. I have posted some readings but please feel free to find some more readings yourself.
3. The Econometric Model of Trade Deficit
In this section, you develop log-linear regression model to study the causes of trade deficits in the USA. You may start with a simple model. Hence we can start with a log-linear regression model of the US trade deficits. I suggest that you develop two more models. Please be sure to give reasoning what you think a particular variable is justified as regressor/independent variable in your model.
4. Interpretation of Estimated Results
In this section you report the estimated results of the three regression model you have developed and interpret them. You also need to justify your results, that is, you need to explain whether the results you found make sense or not.
Then you need to report and interpret the results of two other models as well. Please explain all the results.
Conclusion is a summary of the paper. Please take one/two important sentence of each of the sections before conclusion to put them in conclusion.
In the conclusion, you may also mention the drawbacks of you research paper.
You may also provide a roadmap on how the quality of your research paper may be improved in the future.
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