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Here is the link to the website: https://www.aeaweb.org/articles?id=10.1257/pol.20160555 Replication Exercise - Difference -in Difference 1. From the Advertising and Environmental Stewardship: Evidence from the BP
Here is the link to the website: https://www.aeaweb.org/articles?id=10.1257/pol.20160555
Replication Exercise - Difference -in Difference 1. From the Advertising and Environmental Stewardship: Evidence from the BP Oif Spill website (link here), download the replication package and replicate the following: a. Figures 1 and 2 b. Table 1 (let us know if you run into any issues replicating column 3 and 4) c. Table3 2. For this question, you will need to talk to a friend who is unfamiliar with diff-in-diff (could be a non-economics person, maybe that is even better). First, explain to them the concept of diff-in-diff, in particular parallel trends as well as pre-policy (event) and post-policy (event). Then, show them Figure 1 without the line markers for the oil spill and the leak being capped. Ask them the following questions: a. Are parallel trends being met or violated? b. Based on the graph, ask them to guess when the oil spill occurred and when it got capped. Then generate the graph which includes line markers for their guesses. 3. For Table 3, how do the results of column 1 and 2 change if instead of using the 'BP' variable, the station brand is randomly assignedStep by Step Solution
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