3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She haspanel data on which states allow liquor to be sold on Sunday in which years and wishes toestimate a difference-in-differences model. She writes the following regression equation:YearDUIRate;; =atate +a?+ BTreatmentt +yControl;t + EitiWhich of the following changes does Boyoung need to make?a) She should include a constant in the regression equation.b) She should not include controls because they're already accounted for by fixed effects.c) She should include a time trend instead of time-fixed effects.d) None of the above are changes she needs to make.

Regression determines the relationship between dependent and independent variables which results…

3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: State DUIRate; = a} + BTreatment;t + yControl;t + Eit

3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: State DUIRate; = a} + BTreatment;t + yControl;t + Eit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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