2. Please answer the folowi questions: (b) (5 points) In the year 2001, Washingt

Question

2. Please answer the folowi questions: (b) (5 points) In the year 2001, Washington D.C. passed a no smoking law. We gathered data for many different variables of the D.C. residents in 2000 and 2005. Using that data, we found the following estimated regression equation Hospital 0.645-0.065Yr2005 Please fill in the difference averages Before After D.C (c) (20 points) We then went to Maryland and gathered data for many different variables of the Md. residents in 2000 and 2005. Using that data, we found the following estimated regression equation: Hospital 0.354 0.049*D.C.-0.025 Yr2005 0.042* (D.C. * Yr2005(4) Please fill in the difference-in-difference averages BeforeAfter D.C MD

Explanation / Answer

2)

a) Reverse causality, high correlation between X and error are common sources of endogeneity.

b) Before = 0.645 and after = 0.58

c) For D.C: before = 0.305, after = 0.241

For MD: before = 0.354, after = 0.329

d) The direction of bias is negative. It can be seen clearly from the coefficient of Y2005

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.