Estimate the treatment on the treated

Assignment Help Microeconomics
Reference no: EM131095939

Econometrics 718 - Optional Problem Set

Problem 1- Lets think about the propensity score. What we showed in class is that the distribution of Xi is identical for the treatments and non-treatments when we control for the propensity score. Let's show that. Let's suppose that this is the distribution of (X1i, X2i, Ti) in the population

X1i

X2i

Ti

Prob.

0

0

0

0.10

0

0

1

0.10

0

1

0

0.10

0

1

1

0.20

1

0

0

0.05

1

0

1

0.10

1

1

0

0.10

1

1

1

0.25

That is Prob. is the probability of that particular outcome. Notice the probabilities add up to one.

1. Calculate the propensity score for each of the four different combinations of X1i and X2i

2. Calculate

(a) The distribution of (X1i, X2i) conditional on the propensity score is 2/3 and Ti = 1

(b) The distribution of (X1i, X2i) conditional on the propensity score is 2/3 and Ti = 0

(c) The distribution of (X1i, X2i) conditional on the propensity score is 2/3 and not conditioning on Ti

Problem 2 - Use the stata data jtrain2.dta that you can get from http://www.stata.com/texts/eacsap/. The treatment here is "train" and we will estimate the effect of the treatment on the treated in a number of different ways. The dependent variable will be re78 (real earnings in 1978). Let's first only control for black and hispanic, so there are three categories black, hispanic, and non-black non-hispanic.

a) Tabulate the 6 cell means by race and by training status. That is the mean for black trainees, etc. Also what are the proportions of the three groups by training status?

b) Use the 12 numbers from part a) to calculate an estimate of the treatment on the treated.

c) Use regression analysis with dummy variables to estimate the treatment on the treated.

d) Now use propensity score matching. Stata 13 does this with the package teffects psmatch.

e) Estimate the TT parameter using reweighting.

Problem 3 - Now pick some other data set and choose a treatment variable. Continue to estimate the treatment on the treated.

a) Estimate using linear regression.

b) Try doing by propensity score matching in 4 different ways (any variations you choose).

c) Estimate by reweighting.

Reference no: EM131095939

Llp has provided bookkeeping services to xyz

AccountantsWeBe, LLP has provided bookkeeping services to XYZ, Inc. for the past five years. Recently XYZ's bank told XYZ that they need financial statements with "assuranc

Total cost of producing this level of output

a. Given the above information, what is the value of output? b. What is the total cost of producing the output you calculated in (a)? c. What is the average total cost of prod

Quantitative exercises

Assignment2: Quantitative Exercises Your consulting firm was justgranted an exclusive contract for your state. You now must decide your pricingpolicy, given the following rel

Compute the absolute and relative risk aversion

Compute the absolute and relative risk aversion. Are they increasing, decreasing, or constant and analytic expression for the certainty equivalent amount of wealth in this gam

Impact on china on global microeconomics

Does microeconomics apply to every nation in the world. Explain your reasoning. and explain the specifics of any cases or examples you use and the implications of similar on l

Write about the stages in total product curve

These multiple choice questions belong to Economics. The first question is about the stages in total product curve and the second question is about increase in total output

How to lobby government officials

Suppose that in the hypothetical country of Vanadia, picture frames are distributed based on government policy. This system of distributing goods gives the residents of Vanadi

Describe a time when you experienced functional conflict

Describe a time when you experienced functional conflict in the workplace. What was the result - What are the differences among the traditional, human relations, and interacti

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd