economics
You want to evaluate the impact of a program. This program has a potential impact on women who are between 30 and 40 years of age in 2010. Only women in high intensity regions are eligible to participate in the program. You have the following information:
Table 1
Each year, you have a cross section data at the individual level. Let yijt denote the outcome for individual i who lives in region j and was born in t. The letters in the boxes (A to H) represent the mean outcome for a particular age cohort in a given region. For example, “A” represents the mean outcome among individual between 20 and 30 years of age residing in high intensity region.
a. Consider the following estimator of the program treatment effect: B-C. Explain in words under what assumption(s) this estimator would give a consistent estimate of the program’s true effect. [Hint: Being your answer with “In the absence of treatment”]. Write down the regression model you would estimate to obtain an estimate the regression which will give you B-C. Be sure to define your variables. Also, indicate which parameter in your model represents this estimator of the program effect. Also, state which subsamples of data you would use to estimate this model to get the desired result.
