ECON 452 Lecture Notes - Lecture 10: Treatment And Control Groups, Stata, North Andover, Massachusetts
Document Summary
Policy analysis with pooled cross sections: the difference-in-differences (did) estimator. Many surveys of individuals, families, and firms are repeated at regular intervals of time, often every year. An example of such a survey in the u. s. is the current population survey (or cps), which randomly samples households each year. One reason for using independently pooled cross sections is to increase the sample size: by drawing random samples from the same population at different points in time, we can get more precise estimates. Such data has both a time and a unit dimension, and is often called pooled cross section . Effect of a garbage incinerator"s location on housing prices. Two economic researchers - kiel and mcclain, published a paper in 1995 that studied the effect that a newly built garbage incinerator had on housing values in north andover, massachusetts. They used many years of data and a fairly complicated econometric analysis.
