With panel data, the causal effect
A) cannot be estimated since correlation does not imply causation.
B) is typically estimated using the probit regression model.
C) can be estimated using the "differences-in-differences" estimator.
D) can be estimated by looking at the difference between the treatment and the control group after the treatment has taken place.
Answer: C) can be estimated using the "differences-in-differences" estimator.
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A Californian student consumes Internet services (I) and books (B)
Her preferences are represented by a Cobb-Douglas utility function of the type: U(I,B) = I.5B.5. Initially Y = 100, PI = PB = 1. Lately, however, because of the electricity shortage, the price of the Internet services has increased to 2. The government has decided to give a transfer to the student so that she can recover her initial welfare. In order to determine the transfer the government has hired three consultants who have made the following suggestions: Consultant A: The transfer should allow the student to buy her initial bundle. Consultant B: The transfer should allow the student to get her initial level of utility. Consultant C: The government should give her a transfer of 20. a. Using the expenditure function, find the amount of the transfer implied by consultant A. b. Find the amount of the transfer implied by consultant B. c. Determine whether the consumer is better or worse off from Consultant C's suggestion than before the price increases.
Statutes prescribing maximum hours and minimum wages for women were common by 1920 . The effects of these laws included all of the following except
a. complementary limits on the hours of male workers. b. a negligible impact on female employment. c. reduced competition for jobs between male and female workers. d. increased employment of women in managerial positions.