Suppose that voters face a trade-off between hours of leisure and hours of research before the...

 

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Suppose that voters face a trade-off between hours of leisure and hours of research before the election. Therefore, the utility of a typical voter can be constructed as follows: U(V, L) = log(V) + a log(L) (1) au (V,L) With ƏL > 0, where V is the utility derived from being a good citizen and voting for a "good" candidate. Notice that the existence of V can help explaining why voters actually vote given that their probability of casting a pivotal vote is almost zero. Also, let L represent leisure and a > 0 is a parameter that measures the relative weight of leisure in the logarithm utility function. au (V,L) av > 0, Finally, define V = Bc + RT-RL, where Be represents the ballot cues that help votes to cast a "good" vote, T is the total hours a voter has available before the election (and after the candidates start to campaign) and R is defined as the research payoff per hour that a voter can obtain from collecting information about the candidates in order to increase her chance to cast a "good" vote. a) Define the research payoff that will make the voter indifferent between doing any research or relying only on ballot cues (call it R₂). What is the relationship between B, and the payoff demanded by the voter in order to give up leisure and engage in her first hour of research? (10 points) 1 b) Find the optimum amount of leisure and establish a relationship between B, and the optimum amount of leisure. (10 points) c) Based on the prediction of the theoretical model in question a) and b), develop a research question that first, involves ballot cues and voting behavior and second, allows you to use a difference-in-differences (DID) model to answer your question. Next, construct the DID model showing the equation and rigorously defining each variable and their level of variation (e.g. the variable varies at the state and year levels). (20 points) 1 e) Discuss the assumptions you will need to rely on to validate your findings. What is the advantage of using DID over a simple linear regression measuring the impact of x on y? (20 points) ¶ f) Propose a policy to influence voting behavior that is related to ballot cues. What are your expectations from the policy you have designed? If you were to measure the effectiveness of your own policy, how would you do it? Is there a way to change your policy design such that you can have an "ideal" experiment to measure its effectiveness? (20 points) Suppose that voters face a trade-off between hours of leisure and hours of research before the election. Therefore, the utility of a typical voter can be constructed as follows: U(V, L) = log(V) + a log(L) (1) au (V,L) With ƏL > 0, where V is the utility derived from being a good citizen and voting for a "good" candidate. Notice that the existence of V can help explaining why voters actually vote given that their probability of casting a pivotal vote is almost zero. Also, let L represent leisure and a > 0 is a parameter that measures the relative weight of leisure in the logarithm utility function. au (V,L) av > 0, Finally, define V = Bc + RT-RL, where Be represents the ballot cues that help votes to cast a "good" vote, T is the total hours a voter has available before the election (and after the candidates start to campaign) and R is defined as the research payoff per hour that a voter can obtain from collecting information about the candidates in order to increase her chance to cast a "good" vote. a) Define the research payoff that will make the voter indifferent between doing any research or relying only on ballot cues (call it R₂). What is the relationship between B, and the payoff demanded by the voter in order to give up leisure and engage in her first hour of research? (10 points) 1 b) Find the optimum amount of leisure and establish a relationship between B, and the optimum amount of leisure. (10 points) c) Based on the prediction of the theoretical model in question a) and b), develop a research question that first, involves ballot cues and voting behavior and second, allows you to use a difference-in-differences (DID) model to answer your question. Next, construct the DID model showing the equation and rigorously defining each variable and their level of variation (e.g. the variable varies at the state and year levels). (20 points) 1 e) Discuss the assumptions you will need to rely on to validate your findings. What is the advantage of using DID over a simple linear regression measuring the impact of x on y? (20 points) ¶ f) Propose a policy to influence voting behavior that is related to ballot cues. What are your expectations from the policy you have designed? If you were to measure the effectiveness of your own policy, how would you do it? Is there a way to change your policy design such that you can have an "ideal" experiment to measure its effectiveness? (20 points)

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a The research payoff that will make the voter indifferent between doing any research or relying only on ballot cues R is R Bc1a The relationship between Bt and the payoff demanded by the voter in ord... View the full answer