Local governments are expropriating transfers

Assignment Help Business Economics

Reference no: EM133629788

Now let's think about a different context (ignore parts (a-c) above). Suppose that the government is concerned that local governments are expropriating transfers that are meant for local public goods provision. It turns out that an anti-corruption campaign was waged in Northern districts but not in Southern districts. The government has data on local public goods expenditure for each district before and after the anti-corruption campaign. Please

1. Explain in words the difference-in-difference strategy you could use to estimate the effect of the anticorruption program;

2. Write down the actual DD estimator, defining your variables clearly; and

3. Explain the identifying assumption needed in order for this estimate to be valid.

Reference no: EM133629788

Questions Cloud

Improvement in fishing technology : Explain whether an improvement in fishing technology which reduces MC tends to make the open access effort closer

Reducing interest rates would cripple the economy : Reducing interest rates would cripple the economy stimulating consumer demand would increase tax revenues by lowering tax rates

Economic approach does not apply to marriage and divorce : People consciously understand their decisions as governed by economic imperatives the economic approach does not apply to marriage and divorce.

Discuss in detail the pros and cons : How did COVID affect the consumers, economy, first responders, and healthcare organizations? Discuss in detail the pros and cons.

Local governments are expropriating transfers : Suppose that the government is concerned that local governments are expropriating transfers that are meant for local public goods provision.

What the automakers are trying to sell : What the automakers are trying to sell and what the consumers are willing to buy when it comes to EVs is likely to persist over the next few years.

Oldest on right to most recent observations on left : Consider the data points shown in the diagram, the observations range from the oldest on the right to the most recent observations on the left.

Degree of social capital in that country : A researcher is interested in the relationship between a country's wealth and the degree of social capital in that country.

First national bank-deposit guaranty : First National Bank, Deposit Guaranty, and Peoples, Bank united to form the Regions Bank because they projected they could gain more money

User Account

All Pages