Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Based on the discussion in class and assuming you have the appropriate data. evaluate whether the following situations are ideal for a regression discontinuity design.
Based on the discussion in class and assuming you have the appropriate data. evaluate whether the following situations are ideal for a regression discontinuity design. Use 2-3 sentences. (a) (1.5 points) You want to analyze whether reduced tuition fees increase col- lege admission. You can try to do this by comparing people with access to low tuition fees with people who do not. The city of Novigrad subsidizes 75% of college tuition of potential students from households with annual income less than $30,000. (You have data on the household income levels of all potential college applicants (e.g., those who are eligible to apply college)). (b) (1.5 points) You want to study whether having access to free childcare in- creases parents' labour force participation. The government of Fereldenintroduces a policy where the government subsidizes childcare costs of any child born after January 1, 2023. (You have data on all children born after 2000. their parents, and the parents' labour market statistics (whether they work or not, their income, how many hours they work, etc.).) (c) (1.5 points) You want to study whether higher income tax rates cause peo- ple to work less. The marginal tax rate for income above $500,000 in Wind- helm is 35%. The government of Windhelm increases this marginal rate to 55%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started