Stata Project


Introducion


Students should form teams of at most 4 components. Each team should produce the following: one short paper, divided into two parts (the first one including the introduction and the descriptive analysis, and the second one, the inferential analysis and the conclusions. One folder with all the files necessary to replicate all results of the paper - the first part to be delivered together with the first part of the paper, and the complete folder to be delivered with the whole paper.

The task is to research the causes of corruption. As a dependent variable, two alternative measures will be used, so as to be able to compare results. One measure is Transparency International's "Corruption Perception Index". The other, the new "Public Administration Corruption Index" (or "PACI"; see here).

As independent variables, several governance-related measures will be used, together with GDP per capita. The former originate from the Quality of Government project, which assembles data from various sources. The latter, from the IMF World Economic Outlook).

Students will have to start their work by researching the literature. Two good starting points are the following:

Execution of the project


Students should:

  • Research the literature, while focusing on the practical problems that they will face when estimating the empirical model. Attention should be paid to issues of endogeneity, and to the need to find suitable instrumental variables.
  • Assemble the dataset. The starting point is the Stata project "governance" (see the shared folder named "governance"). Students should autonomously obtain the data for the PACI index (see link above), and "merge" it with the overall dataset.
  • Write a short paper which, to be divided into two parts:

    • Part I
The first part will have an abstract, an introduction containing a short review of the literature and describing the overall research strategy, a data section presenting a descriptive analysis of the data, and a bibliography. Citations will have to follow the Chicago Manual of Style ("author-date" system)

The file should be named: Stataproject_one_group_*_[date], where * is the group identifier (A, B, ..., E) and be both sent, and saved in the group's "docs" subfolder, both in the "word" format (extension: .doc or .docx), and as a pdf file.

Students will also have to turn in the ".do" files which produce all results of the first part of the paper.

The instructor will communicate the date when the first part of the paper is due.

    • Part II
The complete paper, to be turned in after the end of the course, will also contain a section presenting and discussing the results, a final concluding section, and an updated bibliography.

The file should be named: Stataproject_all_group_*_[date], where * is the group identifier (A, B, ..., E) and be both sent, and saved in the group's "docs" subfolder, both in the "word" format (extension: .doc or .docx), and as a pdf file.

Students will also have to turn in the ".do" files which produces all results presented in the paper.