Please refer to the proposal and textbook material that I attached to this post. Try to use my idea for this research paper. If you feel like there is something need to be adjusted, please feel free to do so.

Please make sure to follow the structure!

Paper Structure:

I. Title page.

II. Abstract. This should be less than 50 words and summarize the topic, methodology, and main findings. It should appear on your title page.

III. Introduction. This section should state the nature and objectives of the project along with a brief review of any relevant literature. Make sure to provide some background or motivation for why your project is interesting.

IV. Description of the model. The model should be clearly stated and any equations carefully explained. You should write out the econometric model you plan to estimate, and discuss the expected impact of the exogenous variables in your model.

V. Data description and model estimation. You should use the techniques developed in class to analyze your data and estimate your model. Make sure to describe the dataset you are using by providing summary statistics of important variables. Your results should be reported and discussed in this section and could include: parameter estimates, standard errors, t-statistics, F-statistics, R-squared, tests for autocorrelation, heteroskedasticity, and possible multicollinearity, as appropriate.VI. Conclusion. Review the major findings as well as possible extensions for future work. Make sure to mention any limitations of your approach as well as alternative explanations of your results. Policy implications, if any, could also be included in this section.

VII. Tables and graphs. Your paper must include at least one table and one graph. The tables and graphs should be well-labeled and accessible to the reader—do not merely print out your regression output with cryptic variable names. Appendix If you have a lot of regression results or other details in your theoretical/statistical model that merits to be included yet, they may distract the reader, you may include them in an appendix.

Proposal for Term Research Paper:

The Impact of Personal Disposable Income on Personal Consumption Expenditure

In general, people pay close attention to how much money is able to spend on goods and services in order to satisfy their needs. Personal Consumption Expenditures(PCE) is a measure of the consumption of goods and services within a nation. It is an important component of the Gross Domestic Product(GDP). Personal Disposable Income(PDI) is the key determinant factor in predicting the change in PCE.

People tend to consume more while there is an increase in their income level, but this is not always the case. The effect of government raising the personal income tax rate will have some impact on consumer spending. An increased personal income tax rate causes the net personal income to decrease. The interest rate that banks offered on savings is also a factor influencing the willingness to consume as well as the inflation rate, the interest rate of the mortgage and the rate that bank charges on credit cards. I am not certain about whether to include real GDP growth rate as a factor or not. There is more research to be done in order to determine.

In my research paper, I will try to discover the relationship between personal consumption expenditure and personal disposable income. Most importantly, observe the significance of each factor on the personal consumption expenditure. These data are usually available on government websites within different departments.