In many US states, high school students are offered scholarships are given to students to students...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In many US states, high school students are offered scholarships are given to students to students who remain in-state for university or college. For example, Kansan high school students can receive scholarships for $12,500 if they go to a university within Kansas. These types of policies are often thought to fight brain-drain from states that lack a high-skill workforce. Suppose that you are a policy analyst investigating the effect of scholarship provision on brain-drain. As a baseline model you estimate Residencyi,to + B1 Scholarshipi,t-1 + Ei where Residency is a binary variable indicating whether or not Kansas high school student i resided in Kansas in time t and Scholarship is a binary variable indicating whether or not Kansas high school student i received a scholarship to attend an in-state university in time t - 1. Suppose the estimated model was Residencyi,t 0.721 0.043 Scholarshipi,t-1 (0.0023) (0.00078) a) Interpret 30 and 3₁. b) Do you believe that ₁ = -0.043 is the causal effect of scholarship on residency? c) Do you believe that is biased up or down? If not, why not? If so, explain the direction of the hypothesized bias. d) Suppose that the scholarship was contingent on a high school student's GPA being at least 3.2. How could you use this threshold in regression discontinuity design? Illustrate with a graph showing the effect of scholarship as a function of GPA. Bonus: I mentioned in class that Regression discontinuity is a type of instrumental variable design. Ex- plain intuitively what the connection is and what the instrumental variable is in a regression discontinuity. In many US states, high school students are offered scholarships are given to students to students who remain in-state for university or college. For example, Kansan high school students can receive scholarships for $12,500 if they go to a university within Kansas. These types of policies are often thought to fight brain-drain from states that lack a high-skill workforce. Suppose that you are a policy analyst investigating the effect of scholarship provision on brain-drain. As a baseline model you estimate Residencyi,to + B1 Scholarshipi,t-1 + Ei where Residency is a binary variable indicating whether or not Kansas high school student i resided in Kansas in time t and Scholarship is a binary variable indicating whether or not Kansas high school student i received a scholarship to attend an in-state university in time t - 1. Suppose the estimated model was Residencyi,t 0.721 0.043 Scholarshipi,t-1 (0.0023) (0.00078) a) Interpret 30 and 3₁. b) Do you believe that ₁ = -0.043 is the causal effect of scholarship on residency? c) Do you believe that is biased up or down? If not, why not? If so, explain the direction of the hypothesized bias. d) Suppose that the scholarship was contingent on a high school student's GPA being at least 3.2. How could you use this threshold in regression discontinuity design? Illustrate with a graph showing the effect of scholarship as a function of GPA. Bonus: I mentioned in class that Regression discontinuity is a type of instrumental variable design. Ex- plain intuitively what the connection is and what the instrumental variable is in a regression discontinuity.
Expert Answer:
Related Book For
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
Posted Date:
Students also viewed these accounting questions
-
Five Smithtown High School students are saving up to buy their first cars. They all have after-school jobs, and their weekly salaries are listed in the table. Emily ..........................$110 Sam...
-
Students who are home-schooled often attend their local schools to participate in various types of activities such as sports or musical ensembles. According to the government, 82% of home-schoolers...
-
An examination was given to 500 high school seniors in each of two large cities, and their grades were recorded as low, medium, or high. The results are given in Table 10.25. Test the hypothesis that...
-
Kyrsten Haas expects an S corporation investment to generate a profit of $200,000. Her share of the S corporation is 15%. What is Kyrstens income tax if no cash is distributed? Kyrsten's marginal tax...
-
Kaisha Corporation had the following account balances at the end of 2011: Service Revenue, $13,200; Rent Expense, $1,200; Wages Expense, $8,340; Advertising Expense, $1,350; Utilities Expense, $900;...
-
Some economists think that the central banks should try to prick bubbles in the stock market before they get out of hand and cause later damage when they burst. How can monetary policy be used to...
-
On June 28, 1997, in Las Vegas, heavyweight boxers Mike Tyson and Evander Holyfield met for what proved to be a night to remember. During the third round of the fight, a desperate Tyson illegally bit...
-
Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company has been experiencing losses on the overnight case for some time, as shown on the following...
-
c) Show that 2x+1 x (x+1) 1-2x2 = 2x + Hence, evaluate xx+1) S 2x+1 dx by first expressing the integrand as sum of partial fractions.
-
A solid circular bar ABCD with fixed supports is acted upon by torques T0 and 2T0 at the locations shown in the figure. Obtain a formula for the maximum angle of twist (max of the bar. (Use Eqs. 3-46...
-
Company ABC has the following data for 2020. Balance Sheet as of December 31, 2020 Cash and cash equivalent Inventory Long-term assets Total Assets Short-term liabilities Long-term liabilities...
-
The income statement line gross profit will appear on which income statement format? O a. Multiple-step O b. Single-step
-
Oa. Equity -are cash and other assets expected to be converted to cash, sold, or consumed either in a year. O b. Non current liabilities Oc Current assets Od. Current liabilities Oe. Non current...
-
Your corporate client wants to issue 100-year bonds . The corporation 's CEO reads The Wall Street Journal regularly and has observed that similar bonds have been issued by several companies,...
-
Sketch a complete free body diagram of each link of the mechanism illustrated in figure below. Determine the Torque required to be applied to the link AB for equilibrium? 200 N 300 300 D 400 A 120 C...
-
get Clara to create a checkerboard pattern of leaves inside an empty rectangular world (Figure 4.1), and produce the world similar to what is shown in Figure 4.2. Figure 4.1. Initial screen Practical...
-
SophieDOG, Inc. has debt of $5,000, equity of $18,000, a cost of debt of 8.8 percent, a cost of equity of 12.9 percent, and a tax rate of 21 percent. What is the weighted average cost of capita for...
-
What is the back work ratio? What are typical back work ratio values for gas-turbine engines?
-
Alocal television station plans to drop four Friday evening programs at the end of the season. Steve Botuchis, the station manager, developed a list of six potential replacement programs. Estimates...
-
TJs, Inc., makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing...
-
Phoenix Computer manufactures and sells personal computers directly to customers. Orders are accepted by phone and through the companys website. Phoenix will be introducing several new laptop models...
-
Crane l uses 10 kJ of energy to lift a 50 kg box to the roof of a building. Crane 2 uses 20 kl to lift a 100 kg box the same distance. Which crane is more efficient? A. Crane 1 B. Crane 2 C. Both...
-
Christina throws a javelin into the air. As she propels it forward from rest, she does 270 J of work on it. At its highest point, its gravitational potential energy has increased by 70 J. What is the...
-
Two samples of ideal gas, sample 1 and sample 2, have the same thermal energy. Sample l has twice as many atoms as sample 2. What can we say about the temperatures of the two samples? A. T>T B. T = T...
Study smarter with the SolutionInn App