The paper "Determinants of the National Income of Countries from a Keynesian Perspective" is a worthy example of a research proposal on macro and microeconomics. Research Question 1. Which group of activities would constitute productive activity in Keynesian theory? 2. At what points do aggregate demand equal aggregate supply? 3. What determines the level of national income? 4. What is the correlation between the level of national income and the well-being of the population of the country? Background Literature Based on the research questions set, four major literature sources are selected for corresponding data review.
The first is Forni et al (2007) who write on national and global activities that constitute productive activity. Even though some of these are generally mentioned to include inflation and employment, the writers narrow their research to the Keynesian theory and this is what makes this particular source useful to the proposal. Fatas (2002) also agrees more or less with the Keynesian economists who argue that at no point in time do aggregate demand and aggregate supply become equal. Due to the corresponding opinion held by the writer, it is useful to the proposal and directly linked with the aim of the research in finding the determinants of national income.
The third is Kimball (1995) who mentions a number of determining factors that make up the national income determinant. More importantly, the writer argues that the determinants are always changing and varies from one country to the other. The proposed research would, therefore, look at conditions that create the variations and whether an economic principle can help in achieving stability. The final who is Erceg et al (2000) draw a relation between levels of national income and the well-being of the population and states that unless wealth is evenly distributed, a higher level of national income would not necessarily represent a well-being population.
Research Design The proposed research topic is highly academic and has a lot of data on it in literature works rather than in professional practice. For this reason, the qualitative research method with a corresponding document analysis research design shall be used. This research design is selected because it will offer a detailed secondary data collection process from which the researcher shall select a number of reliable sources to sample data on answering the number research questions that have been posted.
Once the researcher uses a qualitative research method, he will be offered the opportunity to undertake a subjective critique of sources selected. Secondary Data Collection Secondary data collection is selected for the proposed research over primary data collection for a number of reasons. In the first place, because there will be a non-numeric presentation of data, the researcher would need as many text-based data as possible.
Such text-based data are certainly available through the review of existing literature, otherwise known as secondary data. In the second place, a literature log shall be developed by the researcher to select as many appropriate sources that address the research goals and research questions as possible. Thereafter, four major critical themes shall be developed based on the research goals and research questions. The sources shall then be grouped and critically analyzed according to the themes. Data Analysis Plan A qualitative data analysis technique shall be used to analyze all data that shall be collected.
Specifically, the researcher intends to use NVivo software for qualitative data analysis. With this software, the data collected shall be compared with as many empirical data and facts as possible to give a vivid interpretation of the data. This way, even though the researcher in using qualitative research has access to subjective analysis of data shall still achieve validity and reliability in the data analysis to take place.
Erceg, C. John, Henderson, D. Willaim and Levin, A. Thomas, 2000. Optimal monetary policy with staggered wage and price contracts. Journal of Monetary
Economics 46(2), 381-413.
Fatas, Andrew and Mihov, Isaac, 2002. Fiscal Policy and business cycles: An empirical investigation. INSEAD, mimeo.
Forni, Luke; Monteforte, Larry, and Sessa, Lake, 2007. The general equilibrium effects of fiscal policy: Estimates for the euro area. Banca d’Italia, Tema di discussione 652.
Kimball, Michele, 1995. The quantitative analytics of the vasic neo-monetarist model. Journal of Money, Credit and Banking 27, 1241-1277.