Examlex
The New Jersey-Pennsylvania study on the effect of minimum wages on employment mentioned in your textbook used a comparison in means "before" and "after" analysis. The difference-in-difference estimate turned out to be 2.76 with a standard error of 1.36.
The authors also used a difference-in-differences estimator with additional regressors of the type
ΔYi = β0 + β1Xi + β2W1,t + ... + β1+ rWr,i + ui
where i = 1, …, 410. X is a binary variable taking on the value one for the 331 observations in New Jersey. Since the authors looked at Burger King, KFC, Wendy's, and Roy Rogers fast food restaurants and the restaurant could be company owned, four W-variables were added.
(a)Given that there are four chains and the possibility of a company ownership, why did the authors not include five W-variables?
(b)OLS estimation resulted in 1 of 2.30 with a standard error of 1.20. Test for statistical significance and specify the alternative hypothesis.
(c)Why is this estimate different from the number calculated from Δ - Δ = 2.76? What is the advantage of employing this estimator of the simple difference-in-difference estimator?
Trust Instrument
A legal document that sets up a trust agreement, specifying how the trust assets are to be managed and distributed.
Trustee
An individual or organization that holds or manages and invests property or assets for the benefit of a third party.
Legal Title
Refers to the formal right of ownership of property, which may or may not include the benefits of its use and possession.
Trustee
An individual or organization appointed to manage assets on behalf of others, often in contexts like bankruptcy, trust management, or investment funds.
Q5: In a two regressor regression model, if
Q18: If planned aggregate expenditure (PAE)in an economy
Q25: Your task is to model students' choice
Q31: Imperfect multicollinearity<br>A)implies that it will be difficult
Q42: Here are some examples of the
Q48: Under the five extended least squares
Q59: The velocity of money is<br>A) a measure
Q62: In macroeconomics, you studied the equilibrium
Q87: Under the policy of quantitative easing,the central
Q110: There is $5,000,000 of currency in Econland,all