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Statistics and Probability i) What is the benefit of pooling cross sections over time for regression analysis? Which feature does allow this operation? In that

Statistics and Probability

i) What is the benefit of pooling cross sections over time for regression analysis? Which feature does allow this operation? In that case, are regression assumptions violated?

ii) We intend to analyze the effect of minimum wage adjustment on employment in January of 2022. Higher minimum wages reduce employment. However, we haven't had this data yet. In this case, we find similar period which had been occurred in 2016. Please write an equation for this problem which can be taken as an event study showing how two cross-sectional data sets, collected before and after the occurrence of an event, can be used to determine the effect on economic outcomes (Policy evaluation analysis). Which tools can be used? Express variables clearly.

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