|Students individually are required to write a 1500 word research project. Students should choose only one of eleven projects. The research project counts for 30% of the final grade.
For Project One you need to use the Stata dataset project1.dta. The data is from the last four waves of the British Household Panel Survey: wave 15, 16, 17 and 18. The description of the variables is listed in Table One:
a) Estimate an ordered probit model using your chosen satisfaction variable as the dependent variable, where satisfaction depends on number of children in the household, sex of the respondent and real annual household income. Comment on your findings. Calculate the average marginal effect regarding household income and interpret your findings.
b) Now add marital status, educational status, change in financial situation compared to last year (use same as the base category), expectation about the financial situation for a year ahead (use same as the base category) and whether the respondent saves from current income, along with the model specification in part a). Test whether the set of new explanatory variables are jointly significant or not in explaining your satisfaction variable. Comment on your findings. Calculate the average marginal effect for ‘whether the respondent saves from current income’ and interpret your findings.
c) Calculate the average marginal effects with respect to change in financial situation compared to last year and expectation about the financial situation for a year ahead for the model in part b). Comment on your findings.
d) Does the result that you have obtained in part c) alter if you add regional dummies in your model? Comment.
Assignments should be a maximum of 1,500 words in length excluding the references and tables. You should include your output in the Appendix.
All coursework assignments that contribute to the assessment of a module are subject to a word limit, as specified in the online module handbook in the relevant module area of the MINERVA. The word limit is an extremely important aspect of good academic practice, and must be adhered to. Unless stated specifically otherwise in the relevant module handbook, the word count includes EVERYTHING (i.e. all text in the main body of the assignment including summaries, subtitles, contents pages, tables, supportive material whether in footnotes or in-text references) except the main title, reference list and/or bibliography and any appendices. It is not acceptable to present matters of substance, which should be included in the main body of the text, in the appendices (“appendix abuse”). It is not acceptable to attempt to hide words in graphs and diagrams; only text which is strictly necessary should be included in graphs and diagrams.
You are required to adhere to the word limit specified and state an accurate word count on the cover page of your assignment brief. Your declared word count must be accurate, and should not mislead. Making a fraudulent statement concerning the work submitted for assessment could be considered academic malpractice and investigated as such. If the amount of work submitted is higher than that specified by the word limit or that declared on your word count, this may be reflected in the mark awarded and noted through individual feedback given to you.