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Question: Suppose that five states reduce income taxes in a given year. You are interested in estimating whether the tax cut has increased saving, and you find that the saving rate for residents of these five states increased by 2 percent in the year after it was introduced. Can you reasonably conclude that the tax cut caused the increase in saving? How would you conduct a difference-in-difference analysis to estimate the impact ert saving? What assumption must hold for the difference-in-difference analysis to he valid?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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