Imagine the NZ Government is interested in the effect of abolishing university fees on the number of university graduates. To test this policy, the Government implements this the North Island and not on the South Island. The table below shows the number of university graduates on the North Island and the South Island before and after the policy. Before policy After policy 85,000 North Island 75,000 South Island 60,000 50,000 What is the difference-in-difference estimate of the effect of the policy? a--15.000 b--20,000 O € 15,000 O d-20,000

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Imagine the NZ Government is interested in the effect of abolishing university fees on the number of university graduates. To test this policy, the Government implements this policy on
the North Island and not on the South Island.
The table below shows the number of university graduates on the North Island and the South Island before and after the policy.
Before policy After policy
85,000
North Island 75,000
South Island 60,000
50,000
What is the difference-in-difference estimate of the effect of the policy?
a--15.000
b--20,000
O € 15,000
O d-20,000
Transcribed Image Text:Imagine the NZ Government is interested in the effect of abolishing university fees on the number of university graduates. To test this policy, the Government implements this policy on the North Island and not on the South Island. The table below shows the number of university graduates on the North Island and the South Island before and after the policy. Before policy After policy 85,000 North Island 75,000 South Island 60,000 50,000 What is the difference-in-difference estimate of the effect of the policy? a--15.000 b--20,000 O € 15,000 O d-20,000
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