Once you have settled on the hypothesis you will testing, you will need to identify the methodology you will be using to test it. Much of the course will be devoted to preparing you to make these decisions. The empirical methodology section will also contain a description of the data you are using. You should identify the source of the data and how they were collected. You must also explain why you chose the specific variables that appear in your analysis.
Economic theory suggests conceptual variables.
We must choose specific variables that serve as proxies for the conceptual variables. You should develop an intuitive and theoretical basis for examining the independent variables and indicate how their individual impact is hypothesized to influence your dependent variable. Examples of the data and methodology sections of two of my papers can be found here . Description of Data . Before you undertake econometric analysis of your data, you need to understand the data you are working with.