Question: Public finance - Homework #2 1. Choose a data set (or make up your own), that consists of 2 variables for at least two different

Public finance - Homework #2 1. Choose a data set (or make up your own), that consists of 2 variables for at least two different periods of time and for at least two groups (treatment and control) (like in the TANF example in Chapter 3). One of the variables should experience a shock (tax change, benefit change, price change, etc.) in the treatment group for one of the periods. 2. Calculate elasticity using: a. Time series analysis b. Cross-Sectional analysis c. Difference-in-difference 3. Write a short summary on each method results 4. Compare and contrast the differences 5. As always - meaningful graphs are more than welcome. Public finance - Homework #2 1. Choose a data set (or make up your own), that consists of 2 variables for at least two different periods of time and for at least two groups (treatment and control) (like in the TANF example in Chapter 3). One of the variables should experience a shock (tax change, benefit change, price change, etc.) in the treatment group for one of the periods. 2. Calculate elasticity using: a. Time series analysis b. Cross-Sectional analysis c. Difference-in-difference 3. Write a short summary on each method results 4. Compare and contrast the differences 5. As always - meaningful graphs are more than welcome
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