ECO problem
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Exercise10.docx
EXERCISE 10
Purpose: To learn how to use Regression Discontinuity Designs (RDDs) to model the effects of treatments. You are to use the R program “Exercise 10.R” that I have posted on Canvas to complete this exercise. Notice that the R program uses the file “Exercise 10 RDD.csv” as input. This exercise is due on Tuesday, April 27 at 5:00 PM CT.
Now go to the Exercise 10.R program, run it, and answer the following questions:
(a) Explain to me what is going on in Part (a) of the program.
(b) Run the Part (b) of the program. Report the resulting regression using a snipping
tool. What is the estimate of the Treatment Effect? Is it statistically significant?
Explain. Are there any specialty assumptions being used here? Explain.
(c) Run the Part (c) of the program. Report the resulting regression using a snipping
tool. What is the estimate of the Treatment Effect? What is the difference
between reg1 and reg2? Explain your answer.
(d) Report the plot produced by Part (d) of the program.
(e) Report the plot produced by Part (e) of the program.
(f) Report the results produced by Part (f) of the program using the snipping tool.
Explain what this part of the program is doing and what conclusion your draw
from the results.
(g) Explain what is going on in part (f) of the program and why this represents good
practice in conducting RDD analysis. (See your textbook for a discussion of this
issue.)
(h) Report the results of reg3 using the snipping tool. What is the estimate of the
Treatment Effect? Is it statistically significant? Explain your answer.
(i) Report the results of reg4 using the snipping tool. What is the estimate of the
Treatment Effect? Is it statistically significant? Explain your answer. What is
the difference between reg3 and reg4? Explain your answer.
(j) Report the results produced by Part (i) of the program using the snipping tool.
Explain what this part of the program is doing and what conclusion your draw
from the results.
