#35626 1pg 6hrs

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Name the dependent and the main independent variables (identify them separately).

The dependent variable was policy indicator for expansion of Medicaid in twenty-six states; (they consider also the non- or late-expansion states, otherwise what would they use to compare these 26 Medicaid-expansion states to?) Independent variables were Medicaid spending on prescription drugs. Take a look and decide whether you need to switch your independent and dependent variables. What is the outcome here? That would be your dependent variable.

What is one of the main hypotheses? What is the treatment/stimulus? State them in your own words.

The hypothesis is to determine the growth of Medicaid drug spending in Medicaid expansion states. The stimulus is the use of Medicaid insurance. Hypothesis looks good but you need to rethink about the stimulus. Stimulus is the same as the treatment, or the independent variable.

Name the treatment and the comparison groups (identify them separately). Explain the rationale behind this comparison.

The treatment was medic aid, an upward trend was found in states that implemented Medicaid expansions under the Affordable Care Act. Twenty-six states in Columbia implemented the use of Medicaid expansions. The study used state level covariates such as unemployment rate, poverty rate, penetration rate of Medicaid managed care that was measured by use of percentage of Medicaid enrollees. The rationale of the study was to compare the uptake of Medicaid in areas under study. Comment by Gulcin Gumus: I am asking about the treatment group, not the treatment! These two are related but not the same. Comment by Gulcin Gumus: I am not asking about these. I am asking you to explain why they picked the specific treatment group and comparison group. What is the rationale behind this comparison.

Calculate the difference-in-differences (DD) estimate based on the results presented in the first two columns of Exhibit 3 (2011-13 and 2014) for prescription drug spending. Interpret the DD estimate in a single sentence.

29.86-32.29= -2.43 the result is negative this indicates a decrease in number of prescription drug spending as a result of introduction of Medicaid. No this is not it!

e. Consider again the same results as above in part d. provide a graphical representation of these findings together with the implied counterfactual. Make sure to label the axes and the curves.