Suppose We Are Studying the Effects of Expanded Income Supplement

question 10

Multiple Choice

Suppose we are studying the effects of expanded income supplement for senior citizens on their health. We use the two-group, to-period differences-in-differences setup, with working-age citizens as our control group. Which of the following is a key assumption for the validity of this identification strategy?

• A)In the absence of the intervention, the average health outcomes would be the same for both groups.
• B)Before the intervention, the average health outcomes were the same for both groups.
• C)After the intervention, the average health trends would be the same for both groups.
• D)In the absence of the intervention, the average health trends would be the same for both groups.

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Definitions:

Personal Factors

Characteristics or attributes of an individual, including personality traits, beliefs, and physical attributes, that can influence their behavior and experiences.

Attitude

A psychological construct representing an individual’s degree of like or dislike, favor or disfavor, towards a person, object, or idea.

Beliefs

Convictions or acceptances that something exists or is true, especially without empirical evidence.

Communication Model

A theoretical framework that outlines how messages are transmitted and received between senders and receivers, including components like encoding, medium, decoding, and feedback.