Estimating the effect of […] shock on the real GDP, interest rate, and inflation in [...].

Coursework description: using 3-equation model (IS, Philip’s curve, and monetary rule), you have to analyze the effects of the shock [increase in government spending, decrease in government spending, inflationary shock etc.] on the real GDP, interest rate, and the rate of inflation in the country of your choice.
The project should include both the theoretical analysis and VAR estimation.
Plan:
1. Introduction
2. Description of the shock (what and when happened to the economy?)
3. Description of the macroeconomic environment (evaluation of the economic fundamentals/ assumptions about the values of key variables, such as beta)
4. Theoretical analysis (describe the consequences of the shock using 3-equation model)
5. VAR regression (data, methodology, results)
6. Conclusion
Submission requirements:
Format: 12 Times New Roman, 2,5 cm margins, double interval. Harvard style bibliography. Please submit in Word and PDF format.
Submit by the deadline (together with data) to iana.okhrimenko@lazarski.pl
There is 5% grade reduction for each day of delay.
Works not submitted within 7 days after the deadline will not be graded.
Word limit: 2500 words.
All the tables and graphs should be put in appendices.
Plagiarism warning: all the projects will be checked for authenticity using Turnitin. Any case of plagiarism will be followed by grade 0% automatically. The Commission of Inquiry will be initiated.
Grading scheme:
1. Introduction: 10 points
2. Description of the shock: 10 points
3. Description of the macroeconomic environment: 10 points
4. Theoretical analysis: 30 points
5. VAR regression: 30 points
6. Conclusion: 10 points