Question 2: Collection and analysis of primary data

Imagine that you have decided to research the topic of decision-making in households in relation to quality of life OR human capital. Specifically, you want to investigate whether there is support for theories of household decision-making and whether there is any evidence that different approaches to decision-making have a differential impact on either quality of life or human capital formation.

(65 marks)

Word limit: 1100 words

Question 3: Collection and analysis of secondary data

i. Produce some descriptive statistics and draw histograms for the variables relevant to the analysis of the

research question. Then analyse the main features of the distribution of each variable and the relationships

between them. Are the relationships between price cost margin, market concentration and advertising

intensity as economic theory would suggest? (20 marks)

ii. Write down an econometric model that analyses the impact of market structure on performance, based on

the results from Part (i) and also on your knowledge of economic theory. Drawing on economic theory taught

in this module, briefly explain what sign (positive or negative) you expect to observe for the coefficients of

the independent variables in your equation. (15 marks)

iii. Using a suitable econometric method, estimate the model you were asked to write down in Part (ii). Report

the estimation output and explain your results. Your explanation should include a discussion of the

robustness of your model, its limitations, and any additional steps you have taken to check for common

econometric issues. (30 marks)

i. Prepare a plan for a semi-structured interview – based on theories of decision-making in households – with

individuals who live in couples. The plan might include a statement of interview aims, i.e. the research

question the interview seeks to address; a set of questions to be asked, which might be grouped into themes

if appropriate; and a brief indication of how the findings will be used and analysed.

ii. Recruit a volunteer to be interviewed, and use your list to undertake the interview, based on your research

question. Keep the interview quite short – no longer than ten minutes. To complete this exercise, you will

need some results from the interview (in the unlikely event that the first interview is not informative or calls

for a complete rewrite of your questions, it might be prudent to find another interviewee).

iii. Write up your notes on the responses of your interviewee(s).

iv. Code these notes using headings relevant to your research question. If possible, use economic theory to

help with your headings and coding.

v. Write a brief summary of your findings from the interview(s).

vi. Finally, make short notes on the interview experience: what aspects were successful and what would you do

differently another time