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?
Answer to relevant QuestionsYour state introduced a tax cut in the year 1999. You are interested in seeing whether this tax cut has led to increases in personal consumption within the state. You observe the following information: Year . Consumption in ...A study in the Annals of Improbable Research once reported that counties with large numbers of mobile home parks had higher rates of tornadoes than did other counties. The authors conclude that mobile home parks cause ...How have the major federal laws to promote balanced budgets lost their effectiveness over time? Is it necessarily inequitable for future generations to face higher taxes as a result of benefits that accrue to those living today? Explain. Peterson, Hoofer, and Milner (1995) showed that air bag use has led to increases incur crashes. Despite this finding, the government mandates that new cars have airbags, rather than taxing their use. Is this policy a ...
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