You will need to replicate specific results of an academic article using the estimation techniques seen in the lecture. Please provide a word/pdf file with the written answers and a separate STATA do-file or R-script with the coding (either R or STATA can be used for the repliation part). The report for this part should address the questions below:
Describe the research question of the paper you are replicating (~ 100 words)
Draw a DAG of the main research question of the paper. Include examples of variables that are controlled for in the study and include at least one concrete example of an unobserved variable that could lead to omitted variable bias in a regular OLS.
What estimation approach are the authors using? Provide a detailed description identifying the key variables and features of the estimation approach. It is not necessary to include equations. (~ 250 words)
What is(are) the underlying assumption(s) of this approach? According to your reading of the paper are the assumptions likely to hold. If possible, provide evidence whether the assumption(s) for the empirical approach are likely to hold. These could be additional analysis to those required in the replication. Provide a discussion of your findings. (~500 words)
What are the advantages and limitations of this approach? (~ 200 words)
For your allocated paper, use the commands from the lectures to replicate to the best of your ability the corresponding tables and/or figures (See column Replication on table below for specific table required). After replicating, interpret the effect and relative effect of the variable of interest.
Does your replication match the conclusion of the authors? Discuss the challenges in replicating the results. (~200 words)
Propose and develop an extension of your interest to the replicated table. This extension has the objective of providing a more nuanced understanding of the effect of your variable of interest on your outcome. Possible examples of extensions are Heterogeneity analysis, Placebo analysis, estimating whether the effect is persistent over time, etc. (~ 300 words)
Please be aware that I am in Central Europe and I would like the assignment to be done by the evening of Thursday 18th November
