What Is a Difference-In-Difference Estimator? When Is It Appropriate to Use

question 3

Essay

What is a difference-in-difference estimator? When is it appropriate to use one? How do you do so? Explain.

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Definitions:

Investing Activity

Refers to the purchase and sale of long-term investments and property, plant, and equipment, as well as lending money and collecting on those loans.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, but not retired, and are therefore not considered when calculating earnings per share or dividends.

Common Stock

A type of equity security that represents ownership in a corporation and entitles shareholders to vote on corporate matters and receive dividends.