You are interested in the effect of a factory being inspected on whether it reduces its pollution output. There's a variable "number of reported violations" that you have. When the number of reported violations goes from 9 to 10, the probability of being inspected jumps from 20% to 60%. Average pollution levels decrease from 600k metric tons of CO2 to 500k metric tons going from 9 to 10 violations as well. What is the fuzzy regression discontinuity estimate of the effect of inspections on air pollution levels?

You are interested in the effect of a factory being inspected on whether it reduces its pollution output. There's a variable "number of reported violations" that you have. When the number of reported violations goes from 9 to 10, the probability of being inspected jumps from 20% to 60%. Average pollution levels decrease from 600k metric tons of CO2 to 500k metric tons going from 9 to 10 violations as well. What is the fuzzy regression discontinuity estimate of the effect of inspections on air pollution levels?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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