Question: While calculating a difference in difference, we run a regression which is as follows: lm( y ~ d1 +d2 + d3) where d1 and d2
While calculating a difference in difference, we run a regression which is as follows:
lm( y ~ d1 +d2 + d3) where d1 and d2 are dummy variables and d3 is their interaction term.
We thus get its coefficients according to the equation: Y = a + b*d1 + c*d2 + d*d3
What is the difference in difference estimator?
a) a+b+c+d
b) (d-c)-(b-a)
c) a
d) b
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