Paragraph 1 – Motivate the question
Paragraph 2 – State the question
Paragraph 3 – Explain how you answer the question; depending on the complexity of the analysis, you may need one paragraph to sketch our your theoretical approach and an- other paragraph to describe your empirical analysis, or one paragraph to lay out identifi- cation/estimation issues and another to explain exactly what you do
Paragraph 4 – Overview your findings
Paragraph 5 – Put your paper in context with the previous literature pointing out the main contributions of your paper in the literature
Paragraph 6 – Relate your findings to important policy issues (if possible)
Literature Review (2-3 pages)
This section will help you put your paper in the context of the literature. Choose papers that are closely related to your topic to briefly present what they have done. Each reference to the literature should logically flow to the next reference. The purpose is to illustrate that even though similar topics have been examined before there are some issues that they omit or could not examine, and so you will be addressing these issues. Therefore, the last paragraph in this section should give the reader the place of your paper in the literature and your main contributions.
Theory/Empirical Specification (4-8 pages)
Sometimes you have a separate model section and econometrics section, and sometimes you com- bine the theory and econometrics into a single section.
Even if your analysis consists of running a regression…………
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