Question 1 Migration plays an important role in economic development and as a strategy for poverty...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 Migration plays an important role in economic development and as a strategy for poverty reduction. Burkina Faso, whose conditions for agriculture are far from favorable, has a long history of migratory movement, and migration within West Africa has long taken place in response to drought and low agricultural productivity. In recent decades, migration to destinations outside the African continent, particularly to Western Europe, has become more important for migrants from Burkina Faso. Migration affects the household in three ways: 1. When a household member migrates, the household loses labor. 2. Migration often results in remittances. 3. Migration implies a reduction in household size for consumption. A critical question is what happens to the welfare of rural households when they engage in migration. When households lose labor, it may be harder for them to participate in income-generating such as agriculture or joining the workforce. Remittances may partly compensate for these negative effects. In addition, a reduction in household size means less consumption pressure on the household. Issac, who is a UCD Managerial Economics graduate, is trying to estimate the causal impact of migration on household income. Issac took a random sample of 1,200 households where a household member has migrated and another random sample of 1,200 households where no household member has migrated. In Issac's final report he estimates the naive Average Treatment Effect (ATE) on the Treated of the program by subtracting the average income of the 1,200 households where someone migrated from the average income of the 1,200 households where no one migrated. For expositional purposes, in the reminder of this document we will refer to the average treatment effect (ATE) on the treated as ATE. For the rest of this question, use the following information: let y denote income and D denote migration status (i.e. 1 if and individual migrated and 0 otherwise). ? (Yo, l?) ? (Y₁₁|?;) ?=0 30,000 CFA 33,500 CFA ?,=1 40,000 CFA 45,000 CFA a) What are the two averages that Issac can observe in his data? (Provide just numbers with zero decimal places) Average II Average I 30,000 45,000 b) What are the two averages that Issac would like to have to estimate the true Average Treatment Effect on the Treated? For the rest of this question, use the Table 1 below. D-1 D-0 E(Y D) 30,000 CFA 34,000 CFA E(YD) 33,000 CFA 40,000 CFA Remember that ATENaive E[YD=1] - E[YD=1] + E[YolD=1] - E[YolD=0] ATETRUE +Selection Bias Question 1 Migration plays an important role in economic development and as a strategy for poverty reduction. Burkina Faso, whose conditions for agriculture are far from favorable, has a long history of migratory movement, and migration within West Africa has long taken place in response to drought and low agricultural productivity. In recent decades, migration to destinations outside the African continent, particularly to Western Europe, has become more important for migrants from Burkina Faso. Migration affects the household in three ways: 1. When a household member migrates, the household loses labor. 2. Migration often results in remittances. 3. Migration implies a reduction in household size for consumption. A critical question is what happens to the welfare of rural households when they engage in migration. When households lose labor, it may be harder for them to participate in income-generating such as agriculture or joining the workforce. Remittances may partly compensate for these negative effects. In addition, a reduction in household size means less consumption pressure on the household. Issac, who is a UCD Managerial Economics graduate, is trying to estimate the causal impact of migration on household income. Issac took a random sample of 1,200 households where a household member has migrated and another random sample of 1,200 households where no household member has migrated. In Issac's final report he estimates the naive Average Treatment Effect (ATE) on the Treated of the program by subtracting the average income of the 1,200 households where someone migrated from the average income of the 1,200 households where no one migrated. For expositional purposes, in the reminder of this document we will refer to the average treatment effect (ATE) on the treated as ATE. For the rest of this question, use the following information: let y denote income and D denote migration status (i.e. 1 if and individual migrated and 0 otherwise). ? (Yo, l?) ? (Y₁₁|?;) ?=0 30,000 CFA 33,500 CFA ?,=1 40,000 CFA 45,000 CFA a) What are the two averages that Issac can observe in his data? (Provide just numbers with zero decimal places) Average II Average I 30,000 45,000 b) What are the two averages that Issac would like to have to estimate the true Average Treatment Effect on the Treated? For the rest of this question, use the Table 1 below. D-1 D-0 E(Y D) 30,000 CFA 34,000 CFA E(YD) 33,000 CFA 40,000 CFA Remember that ATENaive E[YD=1] - E[YD=1] + E[YolD=1] - E[YolD=0] ATETRUE +Selection Bias
Expert Answer:
Answer rating: 100% (QA)
a The two averages that Issac can observe in his data are Average I where mig... View the full answer
Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
In a meeting with Bain, representatives from the Central Bank of Nigeria, NEEDS, and Oxfam express concern about how challenging it will be to offer basic financial products to the Nigerian rural...
-
The business world today is going very fast and new technology new methods of production and new taste of customers and new market trends as well as new strategies for best control of the...
-
Identify and describe a time (that you would be comfortable sharing for the purposes of this assignment) when you faced a challenge in a friendship, like a betrayal or geographic distance.
-
Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action increases a firm`s stock price from a current level of $20 to $25 in 6 months and...
-
If you had a panel data set with several year-wise observations on each country, explain how you would go about testing the inverted-U hypothesis. How would your test change (for pragmatic reasons)...
-
At most movie theaters, one employee is usually responsible for issuing tickets and collecting cash while another person collects those tickets when patrons enter the theater. What is the reason for...
-
a. Explain how you think Sam Blakely would proceed with his investigation. b. Assuming that there is a secret condo in Costa Rica, what do you think Sams chances are of discovering it? Anna and Jorge...
-
! Required information [The following information applies to the questions displayed below.] A manufactured product has the following information for June. Direct materials Direct labor Overhead...
-
What test can be performed to compare the breast cancer incidence rate between the ¥ 30.0g group and the 0g group? Cancer A paper was recently published concerning the association between alcohol...
-
Joe is an American who obtained his citizenship two years ago. He was recently caught fighting against U.S. forces in Iraq. He says that he is not a member of a rebellious cause but sympathizes with...
-
1 -2 23-1 3) (15+10 p.) Given the matrix A = -3 6-11 7 2-4 58 4 (a) Find a basis for the column space of the matrix that consists of column vectors of A. (b) Find the rank and nullity of A.
-
Carter, Inc. produces two different products, Product A and Product B. Carter uses a traditional volume-based costing system in which direct labor hours are the allocation base. Carter is considering...
-
When working in a group setting, what are some of the strategies you would implement to encourage group cohesiveness and reduce social loafing?
-
What are 2-3 strategies that enhance ethics, labor relations, and work conditions?
-
Assume f(x) is the closed-form expression for the following summation n 3. f(x) = x=1+ x + x + x + ... + x " i=0 And let g(x) represent the closed-form expression for the following summation: n 9(x)...
-
Morganton Company makes one product and it provided the following information to help prepare the master budget: a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July,...
-
Chapter 9 Stock Valuation at Ragan Engines Input area: Shares owned by each sibling Ragan EPS Dividend to each sibling Ragan ROE Ragan required return Blue Ribband Motors Corp. Bon Voyage Marine,...
-
How do organisations identify the costs of a cost object?
-
Food on Wheels is a charitable organisation that provides meals for low-income individuals who are unable to leave their homes. To support its services, the organisation solicits contributions from...
-
Janna Processing is a single-product entity, and provides the summary data shown relating to its product for the current year. Selling price per unit...
-
Solve the problem below. Show that the feasible region is unbounded. maximize: f = -2x1 + x2 + x3 -x1 + x2 + X3 2 subject to: X1 - X2 + X3 2 X1, X2, X3 0
-
Solve Exercise 1 using the tableau method.
-
Redo the winery problem (3)-(4) using the tableau implementation of the simplex algorithm. Note the connection between the tableau you obtain at each step, and the corresponding system of equations...
Study smarter with the SolutionInn App