1. A new universal basic income (UBI) program is established for young adults in Citytown that...

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1. A new universal basic income (UBI) program is established for young adults in Citytown that provides enrollees with $1,000 per month. There is not enough funding to provide UBI to all young adults in Citytown, so enrollment offers are based on a lottery. Organizers are interested in the effect of UBI on completing at least two years of college. Of those who win the lottery, 95% ultimately participate in the program (some move out of town and so are no longer eligible). Four years later, 39% of lottery winners have completed at least two years of college. Of those who do not initially win the lottery, 5% are ultimately able to participate in the program anyway. Four years later, 21% of lottery losers have completed at least two years of college. What is the value of the reduced form? (a) 0.18 (b) 0.21 (c) 0.39 (d) 0.90 (e) 0.95 2. What is an identifying assumption? (a) Something that must be true for the estimate to be BLUE Something that must be true to estimate the equation (b) (c) Something that must be true to identify individuals in the data Something that must be true for the estimate to be causal (d) (e) Something that tells us how someone will be affected by the treatment 1. A new universal basic income (UBI) program is established for young adults in Citytown that provides enrollees with $1,000 per month. There is not enough funding to provide UBI to all young adults in Citytown, so enrollment offers are based on a lottery. Organizers are interested in the effect of UBI on completing at least two years of college. Of those who win the lottery, 95% ultimately participate in the program (some move out of town and so are no longer eligible). Four years later, 39% of lottery winners have completed at least two years of college. Of those who do not initially win the lottery, 5% are ultimately able to participate in the program anyway. Four years later, 21% of lottery losers have completed at least two years of college. What is the value of the reduced form? (a) 0.18 (b) 0.21 (c) 0.39 (d) 0.90 (e) 0.95 2. What is an identifying assumption? (a) Something that must be true for the estimate to be BLUE Something that must be true to estimate the equation (b) (c) Something that must be true to identify individuals in the data Something that must be true for the estimate to be causal (d) (e) Something that tells us how someone will be affected by the treatment

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Answers and Explanations 1 Value of the Reduced Form The reduced form in this scenario refers to the ... View the full answer