The Smaller the Window We Use Around the RD Cutoff

question 13

True/False

The smaller the window we use around the RD cutoff, the less we have to worry about the functional form of the model.

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Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out to shareholders as dividends, typically used for reinvestment in the business, paying off debt, or other purposes.

Additional Paid-in Capital

The amount of money investors pay above the par value of stocks during an equity financing round; it represents excess capital collected from shareholders.

Common Stock

Common Stock refers to shares representing ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.