Question: Suppose that your state announced that it would provide free
Suppose that your state announced that it would provide free tuition to high achieving students graduating from high school starting in 2009. You decide to see whether this new program induces families with high-achieving children graduating in2009 or later to purchase new cars. To test your findings, you use a “falsification exercise”: you observe the new-car-purchasing behavior of families with children graduating in 2008. Why is this a useful exercise?
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