While you search the relevant literature, think critically about the policy issues you are dealing with. Develop a good understanding of the problem you wish to investigate and identify one or two aspects of the problem which appear to be controversial. Focus your research only on these aspects of the problem. It is more important to do an in-depth analysis of one or two policy issues rather than doing a cursory analysis of many issues.
The final paper should have the following components: (i) An Introduction which will include the objectives of your research, its importance and a brief review of related literature; (ii) An Analytical Framework (Theory); (iii) Data Description & Empirical Analysis; (iv) Policy Analysis and Implications and, (v) Conclusion.

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