Sample interview questions: How do you estimate and interpret the economic effects of energy or environmental policy interventions?
Sample answer:
1. Define the Research Question:
– Clearly articulate the specific economic effects of the energy or environmental policy intervention you aim to estimate.
2. Collect Data:
– Gather relevant economic data, including historical time series, cross-sectional data, and panel data.
– Ensure the data is accurate, reliable, and consistent.
3. Choose an appropriate Estimation Method:
– Select an econometric model that aligns with the research question and the available data.
– Common methods include Ordinary Least Squares (OLS), instrumental variables (IV), difference-in-differences (DiD), and regression discontinuity design (RDD).
4. Conduct the Econometric Analysis:
– Apply the chosen econometric method to estimate the causal effect of the policy intervention on the economic outcomes of interest.
– Ensure the model is properly specified and robust to potential confounding factors.
5. Interpret the Results:
– Analyze the estimated coefficients, standard errors, and p-values to determine the statistical significance of the policy intervention’s effects.
– Calculate effect sizes and confidence intervals to quantify the magnitude of the estimated effects.
6. Conduct Sensitivity Analysis:
– Run the analysis using alternative specifications, estimation methods, or data sources to assess the robustness of the results.
– Examine the impact of outliers and influential observations on the estimated effects.
7. Draw Conclusions:
– Summarize the key findings and their implications for … Read full answer
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