5 - Empirical Methods & Evaluation

Question 1

Average treatment effect & Selection Bias

Answer 1

Question 2

Identifying assumptions

Answer 2

Question 3

Approaches to remove selection bias

Answer 3

Question 4

Randomised experiments

Answer 4

Question 5

Potential problems of running experiments

Answer 5

1) Randomised bias
2) Supply side changes
3) Attrition bias
4) “Hawthorne” effects
5) Contamination bias

Question 6

Randomization bias

Answer 6

Question 7

Supply side changes

Answer 7

Question 8

Attrition Bias

Answer 8

Question 9

“Hawthorne” effects

Answer 9

Question 10

Contamination bias

Answer 10

Question 11

Substitution bias

Answer 11

Question 12

Externalities & general equilibrium effects

Answer 12

Question 13

Identifying assumptions in DD models

Answer 13

Question 14

Usual Problems with DD and Natural Experiments

Answer 14

Question 15

Instrumental variation: identifying assumption and limitation

Answer 15

Question 16

Regression discontinuity

Answer 16

Question 17

Regression discontinuity identifying assumptions

Answer 17

Question 18

**(MT PS5)

Answer 18

Question 19

**Potential problems of randomised experiments and solutions

(MT PS5)

Answer 19

Question 20

**Effectiveness of policy in practice

(MT PS5)

Answer 20

Question 21

**Natural experiment

(MT PS5)

Answer 21

Question 22

**Card and Krueger:

Explain the diff-in-diff experiment

(Lecture and MT PS5)

Answer 22

Question 23

**Specify the treatment and control group. Write down the empirical method model in Card and Krueger (1994) and also the econometric regression.

(MT PS5 2b)

Answer 23

Question 24

**What is the coeffcient that identifying the effect of the minimum wage increase on employment?

What is the identifying assumption?

(MT PS5)

Answer 24

Question 25

_Regression discontinuity assumptions and interpretation_ Based on Graph 1, explain **why** and how this evidence can be **interpreted** in the light of a Regression Discontinuity Design. Explain what **assumptions** are needed to identify the treatment eect of job training programs in this setting (MT PS5)

Answer 25

Question 26

_RDD Validity_ 1) Using Graph 2, explain why you have doubts about the robustness of the treatment eect estimates of the economist, 2) Why the RDD validity can be called into question here. 3) What additional graph would you produce to confirm your doubts about the validity of the RDD setting? (MT PS5)

Answer 26