The Difference-In-Differences Approach Relaxes Some of the Required Assumptions for Establishing

question 2

Multiple Choice

The difference-in-differences approach relaxes some of the required assumptions for establishing causality by leveraging what dimension of the empirical setting?

• A) Observing repeated observations of the same cross-sectional units over time.
• B) Observing multiple cross-sectional units receiving the treatment.
• C) Observing a time series for one series.
• D) Being able to construct an instrument from the first stage difference.

---

Definitions:

Illegal

Activities or actions that are forbidden by law and subject to legal penalties.

Higher Value Use

Utilizing resources or assets in a way that yields the most benefit or profit.

Willing To Pay

The maximum amount a consumer is prepared to spend on a good or service, reflecting their perceived value or utility.

Price Ceilings

Regulatory limits set on the price that can be charged for certain goods or services, intended to protect consumers from excessive rates.