han 100 beds are not required to hire licensed workers, while those with over 100 beds ar o hire licensed workers. Suppose further you assume that facilities with fewer than 100 be milar to facilities with just over 100 beds (as if it is random which facilities fall on which si hreshold). Given this description, the most straightforward method you can use to identify ausal effect of licensing requirement on quality of care is: O Difference-in-differences (diff-in-diff) O Instrumental variables (IV) diro decign (RDDI
han 100 beds are not required to hire licensed workers, while those with over 100 beds ar o hire licensed workers. Suppose further you assume that facilities with fewer than 100 be milar to facilities with just over 100 beds (as if it is random which facilities fall on which si hreshold). Given this description, the most straightforward method you can use to identify ausal effect of licensing requirement on quality of care is: O Difference-in-differences (diff-in-diff) O Instrumental variables (IV) diro decign (RDDI
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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
Transcribed Image Text:Suppose that you want to study the effect of occupational licensing on quality of care received at
nursing homes. Suppose further that you come across a policy which states that facilities with fewer
than 100 beds are not required to hire licensed workers, while those with over 100 beds are required
to hire licensed workers. Suppose further you assume that facilities with fewer than 100 beds are
similar to facilities with just over 100 beds (as if it is random which facilities fall on which side of the
threshold). Given this description, the most straightforward method you can use to identify the
causal effect of licensing requirement on quality of care is:
Difference-in-differences (diff-in-diff)
Instrumental variables (IV)
Regression discontinuity design (RDD)
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