Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 (40 pts.) The following question is motivated by Carpenter and Dobkin (2009) who estimate the effect of alcohol consumption C, measured as the

image text in transcribed
Question 2 (40 pts.) The following question is motivated by Carpenter and Dobkin (2009) who estimate the effect of alcohol consumption C, measured as the number of alcohol drinks consumed per day, on mortality M, an indicator variable taking on a value of 1 if deceased and 0 otherwise. They apply a regression discontinuity design (RDD) by exploiting the minimum drinking age set at the age of 21, Le. A0 = 21. The population regression function (PRF) is given by: M,- = a + pL, + m. For this question, use the following sample: a) (2 pts.) Briefly explain whether L is a valid indicator variable for legal drinking age that is suitable for implementing a sharp regression discontinuity design. b) (2 pts.) Briefly explain whether A is a valid treatment assignment variable (or forcing variable). c) (2 pts.) If some of the observations in the control group had fake IDs with an incorrect birthday written on them, briefly describe the nature of the statistical problem it would create

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

9th Edition

978-0132146654, 0132146657, 9780273754091, 978-0273754206

More Books

Students also viewed these Economics questions