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This is a hypothetical question: You are considering the effects of a treatment that occurred in 2008 on some outcome y. The recession hit different
This is a hypothetical question:
You are considering the effects of a treatment that occurred in 2008 on some outcome y. The recession hit different states more and less intensely. You are using a differences in differences/two way fixed effects strategy with state-year level data. What are the fixed effects that you should include? Does this strategy account for the effects of the recession? Explain.
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