Question: Define Y 1 0 Y _ { 1 0 } Y 1 0 as the profits of a firm if it receives a tax break.

Define Y10Y_{10}Y10 as the profits of a firm if it receives a tax break. Define Y11Y_{11}Y11 as the profits of a firm if it does not receive a tax break. You have data for a sample of firms. For each single firm in your data, you will observe either Y10Y_{10}Y10 or Y11Y_{11}Y11 depending on whether they received the tax break or not.

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