Principles of Microeconomics (Second Edition)
2nd Edition
ISBN: 9780393623840
Author: Lee Coppock, Dirk Mateer
Publisher: W. W. Norton & Company
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Question
Chapter 15, Problem 1SP
(a)
To determine
Explain whether the wages in construction is higher or lower than the other jobs.
(b)
To determine
Explain whether the left- handed workers make more or less than right- handed workers.
(c)
To determine
Explain the effect of change in wage for both right – handed and left – handed over time.
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Problem 2
Difference-in-Difference
In the beginning of 2005, Minnesota increased the sales tax on alcohol. Suppose you are
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accidents due to drinking in Minnesota. Unlike Minnesota, Wisconsin did not change the
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of car accidents in each state at the end of 2004 and 2005 are as follows:
Year
Number of car
accidents in Minnesota
Number of car
accidents in Wisconsin
2004
2000
2500
2005
2500
3500
a. Which state is the treatment state and which state is the control state? (10 points)
b. What is the change in the outcome for the treatment group between 2004 and 2005?
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C. Can we interpret the change in the outcome for the treatment group between 2004
and 2005 as the causal effect of the policy on car accidents? Explain your answer. (10
points)
d. What is the change in the outcome for the control…
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Principles of Microeconomics (Second Edition)
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