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Suppose that policymakers in your country are interested in learning about the relative importance of different barriers to educational attainment among the poor. One group of officials believes that the high costs of education are the major constraint while another group believes that what matters is a lack of information on the returns to education. Some economists at the World Bank offer theoretical arguments as to why both constraints matter and interact with each other. You are granted a budget to design a randomized experiment with 10,000 poor households. You can construct up to three treatment arms in this experiment.
(a) How would you select the 10,000 households to be in your study?
(b) Describe up to three treatments that you would use to determine which of the three hypotheses is correct. How would you assign the 10,000 households across treatment and control groups?
(c) Describe the research design in terms of (i) the key dependent variables of interest, and (ii) the procedure to estimate the treatment effects.
(d) Do you need to have a baseline survey in order to identify the causal impact of the treatments? Or can you just use a single follow-up survey? Explain.
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2. The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage in..
Explain how is the cross elasticity theory used to empirically define economic markets.
South western Moving and Storage (SMS) buy a large-capacity trailer truck for $115,000 to provide short-haul earth moving services. SMS is planning selling the truck in seven years for a price of $45,000. Determine the engineering economy symbols and..
What do you believe is the single most influential force in today's society that sets the tone for an individual's personal values and why? Does this force affect Christians positively or negatively? What is your advice regarding this influential for..
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%. What is Abdul's impl..
It is a typical Christmas electronics shopping season, and makers of flat-panel TVs are marketing the latest available models through their own Web sites as well as via retailers such as Best Buy and Walmart. Each manufacturer offers its own unique v..
q1. assume that an investor is risk-neutral i.e. suppose that an investor always chooses the investment with superior
Explain how a bandwagon effect might speed up the rate at which DVD players are adopted by consumers. Do likewise for the case of cable television subscriptions.
You think that you need $60,000/year to live on when you retire. Assuming an annual inflation of 3.4%, how much would you need in actual dollars per year 40 years from now to have the same purchasing capability?
Explain the elements of the estate tax formula. Describe the interplay between gift and estate taxes. Describe strategies to minimize estate taxes. Explain the generation-skipping transfer tax and its relationship to gift and estate taxes.
f the money supply is Ms1 and the goal of the monetary authorities is full-employment output Qf, they should:
Tracy won a $100 million jackpot. She can receive the jackpot as a $5 million payment each year for 20 years, or she can ask to receive the present value of all those payments all at once now. Assume an annual interest rate of 5 percent. If she decid..
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