14.06 Intermediate Macroeconomic Theory Paper Requirement B. Content: We are looking for a paper that is 20-25 pages, double-spaced, with a 12pt Times New Roman font. Please do not hand in anything over 30 pages. The topic of the paper is financial markets and growth. There is a very large literature on how the development of financial markets may affect growth or vice-versa, and how the development of an economy and its financial markets are inter-related. We are looking for papers that fit into this general area of research. For more concrete examples of the area of research toward which we are directing you, please see the articles listed at the end of this document. There are 3 types of papers that are possible: 1. Empirical Analysis An empirical analysis seeks to test various established theories, or seeks to introduce novel concepts, by examining real world data. An absolute must for an empirical analysis is the gathering and examination of a data source. An empirical paper typically states a theoretical prediction (or several possible predictions) and seeks to test the prediction in a real world setting. For example, a common theoretical dilemma is whether the development of financial systems cause improved growth, OR whether financial systems simply develop in areas of high growth potential. They key empirical analysis would attempt to discern the causal pattern: does an improved financial system cause high growth or does high growth lead to an improved financial system? |