A. Conceptual framework - an analysis of the research problems using theory

1. Identification of (theoretical) variables
2. Conceptualized relationships between these variables
3. Hypotheses to be tested

B. Economic theory

1. Micro - e.g., rational choice
2. Macro - e.g., monetary, Keynesian

C. Hypotheses - quantitative hypotheses are subject to empirical testing

1. Must be stated in specific terms
2. Require that appropriate data be available or can be generated
3. Operationalization of theoretical variables; measurement
4. Must be framed so that analytic techniques are available
5. Must have a conceptual basis

D. Details

1. The theory paper should be between 1 and 2 pages of text
2. It should include a mathematical and/or graphical model (the graph(s) should be attached as a separate page)
3. Thoroughly explain each component of the model beginning with, for example, why the demand curve slopes down.
4. Format: follow earlier guidelines.