After State Y increased gasoline taxes from $0.05 per gallon in 1999 to $0.10 per gallon in 2000, gasoline consumption decreased from 250,000 gallons per month to 235,000 gallons. However, in State Z, where there was no tax change, gasoline consumption increased from 140,000 in 1999 to 142,000 in 2000. What is the difference-in-differences estimator for impact of the gasoline tax?
After State Y increased gasoline taxes from $0.05 per gallon in 1999 to $0.10 per gallon in 2000, gasoline consumption decreased from 250,000 gallons per month to 235,000 gallons. However, in State Z, where there was no tax change, gasoline consumption increased from 140,000 in 1999 to 142,000 in 2000. What is the difference-in-differences estimator for impact of the gasoline tax?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:After State Y increased gasoline taxes from $0.05 per gallon in 1999 to $0.10 per gallon in
2000, gasoline consumption decreased from 250,000 gallons per month to 235,000 gallons.
However, in State Z, where there was no tax change, gasoline consumption increased from
140,000 in 1999 to 142,000 in 2000. What is the difference-in-differences estimator for impact
of the gasoline tax?
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