3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She haspanel data on which states allow liquor to be sold on Sunday in which years and wishes toestimate a difference-in-differences model. She writes the following regression equation:YearDUIRate;; =atate +a?+ BTreatmentt +yControl;t + EitiWhich of the following changes does Boyoung need to make?a) She should include a constant in the regression equation.b) She should not include controls because they're already accounted for by fixed effects.c) She should include a time trend instead of time-fixed effects.d) None of the above are changes she needs to make.

Regression determines the relationship between dependent and independent variables which results…

3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: State DUIRate; = a} + BTreatment;t + yControl;t + Eit

3. Boyoung is writing a paper about the effect of Sunday liquor sales on drunk driving. She has panel data on which states allow liquor to be sold on Sunday in which years and wishes to estimate a difference-in-differences model. She writes the following regression equation: State DUIRate; = a} + BTreatment;t + yControl;t + Eit

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphs To Economics

Problem 2SQP

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