TMA 05

The assignment
Cut-off date: 16 April 2024 (12:00 noon UK time)

Important: These pages provide guidance on how to write your assignment.

Please read through all the information, including the Student Notes, before you
start writing.

You should also read the Assessment Guidance specific to this module and be
familiar with the advice in Social Sciences Assessment Information. These sources
contain support and guidance that you may need in writing your TMA including,
for example, advice on plagiarism, referencing and the marking system. Note that
failure to comply with relevant guidance could result in the loss of marks or other
penalties.

Answer ONE question from Part A, follow and complete ALL the instructions in
Part B, and answer ALL questions from Part C. The questions asked in Part A do
not apply directly to your own research project. They give you the opportunity to
apply the research skills learned in Block 5. Part B gives you an opportunity to
discuss initial project ideas with other students. Part C builds on Parts A and B and
asks you to prepare your own initial project plan. Together, the three parts of TMA
05 mark the first steps towards your research project.

Part A: Research skills (65% of the marks)

Answer ONE question from Part A. Choose either Question 1, or Question

2, or Question 3.

Answer the Question (1, 2 or 3) for the research method that you have chosen for
Block 5.

Question 1: Econometrics

Imagine that your research question requires you to analyse the extent to which
concentrated market structures cause supernormal profits and inhibit competition.
Explore the dataset TMA05_data.xlsx, which contains data for 80 different
industries, including variables concerning price cost margins (two measures, pcm1
and pcm2), advertising intensity (adint) and a five-firm concentration ratio (conc).
Using the dataset TMA05_data.xlsx, construct relevant evidence to do the
following:
 • i.Produce some descriptive statistics and draw histograms for the variables
relevant to the analysis of the research question. Then analyse the main
features of the distribution of each variable and the relationships between
them. Are the relationships between price cost margin, market concentration
and advertising intensity as economic theory would suggest? (20 marks)
• ii.Write down an econometric model that analyses the impact of market
structure on performance, based on the results from Part (i) and also on your
knowledge of economic theory. Drawing on economic theory taught in this
module, briefly explain what sign (positive or negative) you expect to
observe for the coefficients of the independent variables in your
equation. (15 marks)
• iii.Using a suitable econometric method, estimate the model you were asked
to write down in Part (ii). Report the estimation output and explain your
results. Your explanation should include a discussion of the robustness of
your model, its limitations, and any additional steps you have taken to check
for common econometric issues. (30 marks)

Word limit: 1100 words

Question 2: Collection and analysis of primary data

Imagine that you have decided to research the topic of decision-making in

households in relation to quality of life OR human capital. Specifically, you want
to investigate whether there is support for theories of household decision-making
and whether there is any evidence that different approaches to decision-making
have a differential impact on either quality of life or human capital formation.

• i.Prepare a plan for a semi-structured interview – based on theories of

decision-making in households – with individuals who live in couples. The
plan might include a statement of interview aims, i.e. the research question
the interview seeks to address; a set of questions to be asked, which might
be grouped into themes if appropriate; and a brief indication of how the
findings will be used and analysed.
• ii.Recruit a volunteer to be interviewed, and use your list to undertake the
interview, based on your research question. Keep the interview quite short –
no longer than ten minutes. To complete this exercise, you will need some
results from the interview (in the unlikely event that the first interview is not
informative or calls for a complete rewrite of your questions, it might be
prudent to find another interviewee).
• iii.Write up your notes on the responses of your interviewee(s).
• iv.Code these notes using headings relevant to your research question. If
possible, use economic theory to help with your headings and coding.
• v.Write a brief summary of your findings from the interview(s).
• vi.Finally, make short notes on the interview experience: what aspects were
successful and what would you do differently another time?
(65 marks)

Word limit: 1100 words

Question 3: Collection and analysis of secondary data

Imagine that you have chosen to do a research project based on secondary data and
materials using the briefing paper, ‘Measuring progress and human development’.

You would like to make use of this report as a key source for your project.

Read the briefing paper and then do the following:

• i.Define a manageable research topic, with a possible research question

related to the report. The research topic should be related to economic
welfare.
• ii.Search for two further sources that will be useful in elaborating your
project; you should provide references for these, and explain the criteria you
used in selecting them and how they relate to your research topic.
• iii.Provide a written statement explaining how you would design your case
study, specifying the sections into which the study would be divided.

Word limit: 1100 words

(65 marks)

Part B: Group Working (15% of the marks)

Follow all the instructions (a) to (d) in this part.

• a.Write a short summary of your current ideas about the research question,
methods and analysis to be used, and some possible conclusions that might
follow. Mention also the main significant risk or challenge to the project at
this stage and say how you might address it. (Up to 600 words.)
• b.Post your short summary to your Tutor Group Forum.
• c.Read and post comments on at least two other summaries on the Tutor
Group Forum. (These comments should be between 100 and 200 words
each.)
• d.Now as part of your TMA, copy and paste your summary along
with ALL your forum posts AND the original summaries to which you were
responding.

Word limit: 1000 words. (This does not include summaries written by other
students.)

(15 marks)
Part C: Initial Research Plan (20% of the marks)

Write a report summarising the following elements:

1. Your research question.

2. The theory and literature review which should include at least two
references that underpin your empirical work. This should focus on theory
and materials from the course but should also bring in related outside
reading on theory, policy and debates.
3. A description of your empirical analysis, which might include:
o a.a description of your research method and data used
o b.a reflection on how your empirical analysis contributes to
answering your research question.
4. A statement of some possible or preliminary findings, such as reflections on
a pilot interview, a piece of evidence relating to a case study or the results of
a regression equation.
5. Reflections on the comments by others, if any, on your initial ideas in Part
B. If you have not received any comments on your summary, reflect on how
the process of reading other students’ summaries and commenting on them
has made you revise your own project (or not).
6. A timetable indicating the points in time by when various aspects of the
research will be completed.

Word limit: 750 words

(20 marks)

All articles and data sets for use with TMAs can be accessed in the Assessment
tab, see the ‘Files for use’ sections for each TMA.

Learning outcomes
This assignment gives you the opportunity to demonstrate the following learning
outcomes:

Knowledge and understanding

You should demonstrate a sound knowledge and understanding of:

• key ideas, theories and debates in microeconomic theory with applications

to current issues in various areas, such as consumption, households,
production, firms, exchange, policy, environment, finance and labour
• one or more research techniques in economics.

Cognitive skills
You should demonstrate the ability to:

• define and use key terms and concepts in economics

• construct effective arguments in analysing economic questions
• apply economic theories and models to analyse economic problems and
events
• evaluate economic statements and theories
• use diagrams with verbal explanations of economic issues
• interpret qualitative and quantitative evidence, such as case studies and
articles, and the results of regression analysis
• carry out a short literature review and a research project in economics using
either quantitative or qualitative research methods.

Key skills

You should demonstrate the ability to:

• communicate effectively complex information and arguments in writing,

using appropriate academic conventions
• reference sources following appropriate academic conventions
• communicate the output of your own academic research in writing
• interpret the results of statistical analysis, such as descriptive statistics and
multiple regression analysis
• carry out a project using multiple regression analysis (for some)
• access databases, and select and retrieve data sets and academic materials
published over the internet
• use software packages to carry out statistical analysis.

Practical and/or professional skills

You should demonstrate the ability to:

• evaluate competing explanations and theories in relation to evidence

• analyse economic problems and issues
• work independently to analyse a research question using either quantitative
or qualitative research methods.

Student notes
Part A

Part A of TMA 05 is made up of three alternative questions. You should answer

only one part of Part A (either Question 1, 2 or 3). Each part relates to one of the
three types of research method you can use for your project: econometrics;
collection and analysis of primary data; and collection and analysis of secondary
data. You should answer only the question that relates to the research method you
have chosen during your work on Block 5.

Question 1

The link between market structure and performance (profits) is analysed in Chapter
7. In this question you are advised to use price–cost margin (PCM) as a measure of
‘performance’.

Question 1 (i) asks you to produce descriptive statistics for variables that might be
used to understand the extent to which concentrated market structures cause
supernormal profits and inhibit competition. For each variable of interest, you
should produce and discuss descriptive statistics and histograms. You will also
need to investigate the relationship (e.g. scatterplot and correlations) between the
variables of interest and relate these results to economic theory. You will find
relevant theory in Chapter 7.

Question 1 (ii) asks you to specify a model that can be used to analyse the data.
You need to justify your choice of the dependent variable and the model
specification proposed. The descriptive statistics from Question 1 (i) will help in
deciding on your econometric model.

In Question 1 (iii) you need to decide which estimation method is appropriate for
your model. You may wish to refer to the document ‘DYEP: Using econometrics’,
available in the Assessment section of the module website, and information in the
Online tutorial: Econometrics. You should then estimate the econometric model
proposed in (ii) and interpret its results. You should apply an appropriate
estimation method and use this to analyse the statistical significance of each
variable and the statistical quality of the model. You should consider what suitable
diagnostic tests to run, discussed in Block 5, to see whether there is evidence to
suggest that heteroskedasticity could undermine the estimation carried out. Finally,
you will need to discuss how effective your econometric strategy is in addressing
the question of the extent to which concentrated market structures cause
supernormal profits and inhibit competition. You will need to consider whether the
data and the results provide convincing evidence to answer this question. This will
also be a good moment to think about any possible additional variable you would
have liked to include in your econometric model to identify the effect of market
structure on performance.

Question 2

One of the most important skills needed for undertaking primary data collection is
the ability to carry out interviews. The work in Block 5 on primary data analysis
encouraged you to practise this skill, and also provided examples of interviewing
technique. This part of the TMA gives you the opportunity to demonstrate and
extend your interviewing skills. When thinking about your themes and/or
questions, you may find it helpful to think of ways in which you could start and
then develop the interview so that it elicits responses that go beyond the obvious, if
possible.

We have chosen a topic that you have studied in Block 1 of the module, and a topic
for which it should be possible to recruit a volunteer interviewee. For example, if
you focus on human capital, a volunteer with any post-school education or training
that involves costs would be suitable. The main source for topics and questions on
household decision-making is in Chapter 4. The topic of human capital is discussed
throughout the module, particularly in Chapter 3 and Chapter 9. Topics related to
quality of life, such as welfare, are discussed in Chapter 9.

For this assessment you should submit: your list of themes and questions, your
coded notes, your summary of findings and your notes on the interview experience.

Question 3

Your research question should relate to economic theories covered in the module.
Make sure you understand the theory you are exploring in your research question.
You may find it helpful to draw on Chapter 9, which discusses alternative
measures of economic welfare. Remember to ensure that your research topic and
research question are not over-ambitious. You will be much more successful if you
focus on a small number of analytically related issues associated with economic
welfare – whether this means looking in more detail at an issue raised by the
document you read, or comparing material in the summary with material from
elsewhere. Either way, remember that it is the economic theory that will help you
to delineate a research question. It is possible to gain full marks from using the
briefing paper, ‘Measuring progress and human development’, plus two additional
references, to answer the questions.

One of the key skills in undertaking secondary-data research is selective searching

for secondary sources, and the Block 5 work on secondary-data research provided
practice in this skill. In searching for further sources, you may wish to make use of
the online activities which guide you through a range of search techniques. This
could involve, for example, finding sources that allow you to go in more depth into
different explanations for what this particular study found; finding out more about
the study itself; or comparing the study’s findings on your topic with findings from
other studies. At least one of your sources should help you to relate this study to
economic theory.

In writing your statement you will find it helpful to refer to the guidance on project
structure in Week 1 of this block, and also to the sample secondary-data project we
have used as the basis for a good deal of the work on secondary-data research.
Part B

Part B gives you an opportunity to share your preliminary thoughts about the
research project. It is also an opportunity for you to comment on the ideas of other
students and to receive comments on what you are thinking of doing. Your
comments should be constructive and draw on course materials wherever possible.
The design of a research project is covered in Block 5.

Part C

Doing TMA 05 will give you the opportunity to develop an initial plan for your
research project, and receive feedback from your tutor.

Your initial research plan should use no more than 750 words. Your research
project will evolve as you develop it, but the plan is an essential step as it will help
you bring your theoretical and empirical interests together with your preferred set
of methods for tackling your research question. The plan will help you take stock
of where you are at this point and help you understand the key steps you need to
follow to accumulate and analyse your data. It should help you start to identify a
structure for your final project even if the structure changes in light of what you
find or difficulties that you come across.

So the plan is not expected to be a final version that incorporates all the various
sections of your project. That said, do use this opportunity to think about how you
will relate economic theory from the module to your empirical work, and whether
your approach is likely to provide the answer to your research question.

Remember, research is an iterative process and it is likely that you will still be
revising your project until close to the final EMA deadline. However, it is
imperative that you submit your EMA on time because you will not be granted any
extension. So do make sure your research timetable is realistic.

Reflections on the assignment (not marked)

Once you have completed the assessed component of the assignment you should
reflect on the process of completing the assignment. These reflections are not
assessed but you will receive better feedback. By this stage of the module, you
should have a clear initial research plan. You should be working towards a well-
defined research question and have some concrete ideas of how you will obtain and
analyse your data. Here are some prompts that will help your dialogue with your
tutor about this TMA and your project:

• Is your research question well specified, not too broad, and feasible?
• How confident are you about using your chosen research method effectively
for your project?
 • Have you changed your ideas as a result of receiving or giving comments on
the Tutor Group forum?
• What are the main challenges you expect when working on your project and
how might you overcome them?

Word limit: 50 words

Checklist
Have I: Yes No, where can I look for guidance?
Look at Getting started in Social Sciences Assessment
Information. See also Understand the question in ‘Skills for
Made sure I understand
OU Study’.
the question?

Carefully read through the student notes that accompany your

Read all of the guidance assignment to check that you have followed all the advice and
notes for this instructions.
assignment?

Actively studied the

See the booklets Reading and Taking Notes and Thinking
relevant module
Critically
material and anything
else to which I’ve been
directed?
Reflected on my
See Section 2, ‘Active learning’ and Section 4, ‘Being
learning, including
reflective’ of the booklet Develop Effective Study Strategies.
feedback received on
See also Skills for OU Study Learning from feedback.
earlier assignments, in
order to improve my
skills?
Further advice on structuring answers is available in the
relevant sections in Social Sciences Assessment Information.
See, for example, Skill: Essay writing.
Thought about how best
For questions relating to style and language, see the
to structure my answer
section Presentation and language in Social Sciences
and questions of style
Assessment Information. See also Developing academic
and language?
English and Writing for university in ‘Skills for OU Study’;
and Section 7 ‘Choosing a writing style’ and Section 8
‘Improving your written English’ of the booklet Preparing
Assignments.
Guidance on writing in your own words is available in the
sections on Skill: Understanding plagiarism and Skill: Writing
Written in my own
in your own words in Social Sciences Assessment Information.
words?
 Advice on using evidence to support your arguments is
available in the section on ‘Selecting your examples’ in Social
Sciences Assessment Information. See also Gathering your
Where necessary, used materials in ‘Skills for OU Study’.
evidence to back my
arguments, and Guidance on referencing is available in the section
referenced correctly? on Referencing in Social Sciences Assessment Information.
The Open University uses the ‘Cite Them Right’ version of
Harvard. You can find advice on the ‘Referencing and
Plagiarism’ page of the Library website, which provides
access to the Cite Them Right website, a practical guide to
referencing commonly used by UK universities.
The guidance notes tell you the word limit for each part of the
TMA. An answer that is shorter than the word length by more
Checked my word than 10% is likely to be too short to have fully answered the
count? question. An answer that exceeds the word limit by more than
10% will be penalised. For further information see Social
Sciences Assessment Information, Word length.
Written the word count
Check the word count and write that figure clearly at the end
at the end of each part of
of each part of the assignment.
my TMA?
Set out my assignment See Assessment Guidance, Conventions for presenting written
properly? work.
Completed each part of Read through these assignment notes carefully to check that
the TMA? you have completed all the necessary tasks.

TMA 05
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