The dataset for these questions are in the link below:

https://drive.google.com/file/d/10RSmW6SkhERgWGYYKEukyvxB55lOHhFB/view?usp=sharing

We are going to examine a study on monetary policy by economists Gary Richardson and William Troost {the full paper is available here}. You can also read more in the book "Mastering 'Metrics". The largest economic downturn in American history - the Great Depression crashed the stock market in October 1929. Subsequently, the banking system broke down in Mississippi in 1930. In their study, they designed a quasi experiment to understand whether monetary policy contributed to the Great Depression and whether more aggressive monetary intervention might have prevented the financial collapse. The U.S. Federal Reserve System is organized into 12 districts, and the border between the Sixth and Eighth districts defines a natural experiment for us. In the depression-era, regional Feds had considerable policy independence. The Atlanta Fed, running the Sixth District, preferred lending to troubled banks. By contrast, the St. Louis Fed that ran the Eighth Ditrict thought that the central bank should restrict credit in a recession. In the experiment, the Eighth District is treated as a control group, where policy was to do little or even restrict lending, while the Sixth District is a treatment group, where policy was to increase lending. 1. First, we can take a look at the number of banks still operating in each District on October 1, 1931, about 11 months after the beginning of the crisis. On that day, 132 banks were open in the Eighth District and 119 were open in the Sixth District. However, we need to take into account the fact that the two districts weren't the same ininltally. This can be seen from the apparent difference in the number of banks operating on May 1, 1930, well before the crisis, with 139 banks open in the Sixth District and 155 banks open in the Eighth. What is the Difference in Differences {DiDi estimate of the effect of lending to troubled banks in terms of the banks open? 2. In practice, however, the DH] is best analyzed with regression models fit to samples of more than four data points. Therefore, we construct a sample of size 12 {on August 1st of each year from year 1929 to 1934} and use the following regression by estimating: Yd = 0! + TREATd + TPOST; + STREATCI all POST; + Ed: TREAT\"; is equal to 1 for data points from the Sixth District and zero otherwise. POST: = 1 indicates the observations from 1931 onwards {including vear1931} and zero otherwise. We have provided you _b_an_|_