Consider the following case. Suppose that you have a pooled cross section data for year t (before the implementation of a program) and for year t + 1 (after the implementation of a particular program). Let Di = {0, 1} indicates enrollment of individual i in the program and Y be the outcome of interest. Write the econometric specification for a regression of Y and D using the simple difference method. Again, you must correctly specify the subscript. (a) Explain parts of the pooled cross sectin data that you will use to estimate the simple difference method. (b) Explain the assumed counterfactual in this model and the weaknesses of the assumed counterfactual.
Consider the following case. Suppose that you have a pooled cross section data for year t (before the implementation of a program) and for year t + 1 (after the implementation of a particular program). Let Di = {0, 1} indicates enrollment of individual i in the program and Y be the outcome of interest. Write the econometric specification for a regression of Y and D using the simple difference method. Again, you must correctly specify the subscript. (a) Explain parts of the pooled cross sectin data that you will use to estimate the simple difference method. (b) Explain the assumed counterfactual in this model and the weaknesses of the assumed counterfactual.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following case. Suppose that you have a pooled cross section data for year t (before the implementation of a program) and for year t + 1
(after the implementation of a particular program). Let Di = {0, 1} indicates enrollment of individual i in the program and Y be the outcome of interest. Write the econometric specification for a
regression of Y and D using the simple difference method. Again, you must correctly specify the
subscript.
(a) Explain parts of the pooled cross sectin data that you will use to estimate the simple difference
method.
(b) Explain the assumed counterfactual in this model and the weaknesses of the assumed counterfactual.
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