# Impact of Log GDP Per Capita on Life Satisfaction Essay

## ANSWER

**Title:** Choose a concise and informative title that reflects the focus of your paper, such as “The Impact of Education on Household Income: An Empirical Analysis.”

**Abstract:** Summarize the main question, methods, results, and conclusions of your study in a brief abstract (around 150-250 words).

**Introduction:** In this section (around 3 pages), provide an introduction to your research question. Explain the significance of understanding the relationship between X and Y (e.g., the effect of education on income), and the potential implications of your findings. Reference relevant research articles, chapters, or books (at least 5) to establish the context and importance of your analysis. Explain how your study contributes to the existing literature and why your analysis is related to the work of others.

**Data:** Dedicate at most 1 page to describing the dataset you are using. Include details such as the dataset name, source, sample size, and a summary of the variables. You can provide more detailed information in the Appendix.

**Methods:** Explain the regression analysis methods you will be using. Start with a simple Ordinary Least Squares (OLS) regression with a single regressor (around 1 regression). Then, explain why you’re extending your analysis by running at least three additional OLS regressions with multiple regressors and nonlinear function forms (discuss the reasons for each regression).

**Results:** Present the results of your regression analyses. Use tables to display regression output (at least one table) and scatter plots with simple regression lines (at least one scatter plot). Each table and plot should be self-contained and easy to understand without referring to the main text.

**Hypothesis Testing:** Discuss the single and multiple restrictions you’ve tested in your regressions. Interpret the hypothesis testing results accurately.

**Endogeneity Issue:** Identify a potential endogeneity issue in your OLS regression analysis. Propose a hypothetical solution by introducing an example of instrumental variables or data collection methods that could address this issue.

**Logit/Probit or Fixed-Effect Regression:** Explain why you chose to use either logit/probit regression or fixed-effect regression instead of OLS for certain parts of your analysis. Present and interpret the results of these alternative regression methods.

**Conclusion:** Summarize the main findings of your study and reiterate the implications of your results. Highlight what you’ve accomplished in your analysis and suggest areas for future research.

**References:** List all the references you’ve cited in your paper following a consistent citation style (e.g., APA, MLA).

**Appendix:** Include additional information about the dataset, detailed regression outputs, and any other supplementary material that supports your analysis.

Remember, the outline above is a general guideline based on the requirements you’ve provided. You’ll need to fill in the details with your specific research question, dataset, regression models, and findings. Make sure to carefully follow the instructions you’ve been given and provide a well-structured, coherent, and informative research paper.

## QUESTION

## Description

• Your question focuses on a relationship between one variable Y and another variable X. Through-

out the paper, you need to use the same (Y, X) or their functions. (Let’s say you are interested in

the effect of educ on income, where income is annual household income and educ is years of edu

-cation. You need to regress a function of income on a function of educ as well as other covariates

throughout the paper. An example of functions include 1{income ? $26, 200}, log(educ) and so

on.) The question needs to be “What is the effect of X on Y ?” or “Can X help to increase Y ?”

or something similar. It should not be “How we can predict Y ?” or “How can we explain the17

variation of Y ?”.

1. In the first submission, you upload a draft. (I expect it is at least 2 pages.)

2. In the second submission, you upload a draft. (I expect it is at least 8 pages.)

3. You follow the instructions in this syllabus and in the Canvas announcements.

4. No code in the main text. No file name in the main text. No URL in the main text.6 Do not use a

bulleted list or a numbered list in the main text.8

5. Your final paper has at least the following sections: Title, Abstract, Introduction, Data, Results,

Conclusion, References, and Appendix. You use each section effectively.

6. Graders can understand what you want to say. It does not include any Stata command (or other11

programming languages) in the main text.

7. Your introduction specifies a question that you try to answer. It explains why the question is important13

and to whom it is important. Do not say that the question is important to you. (I expect the14

introduction to be around 3 pages.)

8. Your introduction cites more than 5 references. They need to be research article/chapter/book. You16

explain why your analysis is related to theirs. You should not cite my lecture notes.

9. Your final paper explains a dataset well with at most 1 page in the main text (e.g., dataset name,

sample size, who collects, summary statistics and so on.) You can write more in the appendix.

10. You have one OLS regression with a single regressor. You interpret the regression result correctly.

11. You have at least three OLS regressions by adding regressors to the regression in Item 10. All of them

have multiple regressors and nonlinear function forms. You explain why you want to run different

regressions with multiple regressors, instead of the regression in Item 10. (See Section 6.8.)

12. You interpret the regression results correctly. (Which parameter is the parameter of interest?)

13. You conduct at least one hypothesis testing for the single restriction. You need to interpret the

hypothesis testing results correctly.

14. You conduct at least one hypothesis testing for the multiple restrictions. You need to interpret the

hypothesis testing results correctly.

15. You point out a potential endogeneity issue in the OLS regression analysis.7 You explain how you

could solve the potential endogeneity issue. (This question asks you for a hypothetical solution. You

need to come up with one example of instrumental variables or one example of data collections. It is

ok that your dataset does not have such variables.)

16. You use either logit/probit or fixed-effect regression. Explain why you use it instead of OLS.

17. You interpret the results of logit/probit or fixed-effect regression.

18. In the Conclusion section, you explain well what you have done.

19. You use at least one scatter plot with a simple regression line. The plot should be self-contained so

that a grader does not need to read the main text to understand the information in the figure. (If your

dependent and independent variables are binary, we can use a box plot to visualize your data.)

20. Your use at least one table about the multiple regression. The table should be self-contained so that a

grader does not need to read the main text to understand the information in the figure.