In a sharp regression discontinuity design,

A) crossing the threshold influences receipt of the treatment but is not the sole determinant.
B) the population regression line must be linear above and below the threshold.
C) Xi will in general be correlated with ui.
D) receipt of treatment is entirely determined by whether W exceeds the threshold.


Ans: D) receipt of treatment is entirely determined by whether W exceeds the threshold.

Economics

You might also like to view...

Which of the following statements is true of a frictionless labor market?

A) The quantity of labor demanded always exceeds the quantity of labor supplied. B) Firms can instantly hire and fire workers. C) The quantity of labor supplied always exceeds the quantity of labor demanded. D) All firms pay below the equilibrium wage rate.

Economics

In long-run equilibrium after a permanent money-supply increase there follows:

A) an increase in exchange rate, E. B) a decrease in exchange rate, E. C) an increase in output, Y. D) a decrease in output, Y. E) an unchanged exchange rate, E.

Economics

This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.If the two music stores are faced with the game in the figure, we can see that:

A. neither store has a dominant strategy. B. MiiTunes has a dominant strategy, but The Rock Shop does not. C. both stores have a dominant strategy. D. The Rock Shop has a dominant strategy, but MiiTunes does not.

Economics

Give an example of a firm that cannot cover total costs but decides to remain open even so. Use hypothetical numbers and avoid using any examples provided in the text.

What will be an ideal response?

Economics