Use the datafile DS2004 on the textbook webpage. The authors argued that an exogenous police presence would deter automobile theft. The evidence presented in the chapter showed that car theft was reduced for city blocks which received police protection. Does this deterrence effect extend beyond the same block? The dataset has the dummy variable oneblock which indicates if the city block is one block away from a protected institution.

(a) Calculate an analog of Table 18.3 which shows the difference between city blocks which are one block away from a protected institution and those which are more than one block away from a protected institution.

(b) Estimate a regression with block and month fixed effects which includes two treatment variables:

for city blocks which are on the same block as a protected institution, and for city blocks which are one block away, both interacted with a post-July dummy. Exclude observations for July.

(c) Comment on your findings. Does the deterrence effect extend beyond the same city block?