BUSN5000 HW 8 Part B

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 1 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis Part B: Empirical Analysis In this exercise, you will replicate some of the main findings of Carpenter and Dobkin (2009) (herea ! er CD) as reported in Angrist and Pischke (AP). Remember, AP use a version of the CD data that has been collapsed or aggregated to the month level. You will access the data from the Mastering Metrics site using the read_dta function from the haven package. Background To get ready for your analysis, let’s review CD’s “first-stage” findings on the e " ects of MLDA laws on drinking behavior. Question 1: CD show that drinking increases a ! er the 21st birthday on CD show that drinking increases a ! er the 21st birthday on _____ _____ Correct! Question 2: Their preferred specification indicates a statistically significant Their preferred specification indicates a statistically significant _____ percentage-point e " ect on the likelihood of having 12 or _____ percentage-point e " ect on the likelihood of having 12 or more drinks in a year. (Answer with an integer value). more drinks in a year. (Answer with an integer value). 6 Correct! Question 3: the intensive but not the extensive margin. ✗ neither the intensive nor the extensive margin. ✗ both the extensive and intensive margins. ✓ the extensive but not the intensive margin. ✗ Assignment Assignment 8: Regression 8: Regression Discontinuity Discontinuity A: Short Answer (https://chris- cornwell.shinyapps.io/Assignment8/#section- a-short- answer) Part B: Empirical Analysis (https://chris- cornwell.shinyapps.io/Assignment8/#section- part-b- empirical- analysis) Submission Start Over

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 2 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis This percentage-point e " ect translates into about a/an _____ This percentage-point e " ect translates into about a/an _____ percent increase on the likelihood of having 12 or more drinks percent increase on the likelihood of having 12 or more drinks in a year. (Answer with an integer value). in a year. (Answer with an integer value). 11 Correct! Question 4: Their preferred specification indicates a _____ percentage- Their preferred specification indicates a _____ percentage- point increase in the proportion of days drinking. (Answer with point increase in the proportion of days drinking. (Answer with an integer value). an integer value). 2 Correct! Question 5: This percentage-point e " ect translates into about a/an _____ This percentage-point e " ect translates into about a/an _____ percent increase in the proportion of days drinking. (Answer percent increase in the proportion of days drinking. (Answer with an integer value.) with an integer value.) 21 Correct! Question 6: CD lump all causes potentially related to _____ into the ______ CD lump all causes potentially related to _____ into the ______ (internal/external) category and all causes unrelated to ______ (internal/external) category and all causes unrelated to ______ (internal/external) into the ______ category. (internal/external) into the ______ category. alcohol, external, alcohol, internal Correct! Question 7:

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 4 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis Answer the following questions based on the Table 1. Question 8: Deaths from motor vehicle accidents for under 21-year-olds Deaths from motor vehicle accidents for under 21-year-olds comprise about _____ percent of all deaths.(Round to the comprise about _____ percent of all deaths.(Round to the nearest integer.) nearest integer.) 32 Correct! Question 9: The homicide rate for under 21-year-olds is about _____ per The homicide rate for under 21-year-olds is about _____ per _____. (Report an answer to two decimal places.) _____. (Report an answer to two decimal places.) 16.64, 100,000 Correct! Question 10: Overall, MVA deaths (increase/decrease/stay the same) _____ Overall, MVA deaths (increase/decrease/stay the same) _____ a ! er age 21. a ! er age 21. decrease Correct! Continue Table 1. Summary Statistics, under/over 21 < 21 < 21 >= 21 >= 21 N Mean Mean SD SD N Mean Mean SD SD all 24 92.80 2.38 24 98.54 2.67 external 24 74.29 2.19 24 76.48 3.31 internal 24 18.51 1.34 24 22.06 1.42

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 5 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis RD plots and estimates of MLDA effects Construct RD plots for mva , suicide and homicide using a quadratic specification that varies on either side of the cuto " . Combine the plots in one figure with annotations to distinguish them. R Code ! Start Over ▶ Run Code # RD plot for MVA deaths mlda %>% ggplot(aes(x = )) + geom_point(aes(y= ), colour="black") + geom_smooth( mapping = aes(y= , group = ), se = FALSE, method = " ", formula = y ~ poly(x, 2), color = "red", size=.75 ) + annotate(geom="text", x=22.5, y=32, la # Add RD plot for suicides geom_point(aes(y= ), colour="black") + geom_smooth( mapping = aes(y= , group = ), se = FALSE, method = " ", formula = y ~ poly( , ), color = "red", size=.75 ) + annotate(geom="text", x=22.5, y=10, la # Add RD plot for homicides geom_point(aes(y= ), colour="black") + geom_smooth( mapping = aes(y= , group = ), se = FALSE, method = " ", formula = y ~ poly( , ), color = "red", size=.75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 7 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis Then assemble your results in a table using stargazer . Use Table 2 to answer the following questions. Question 14: R Code ! Start Over ▶ Run Code mva_l <- lm( ~ over21 + age, mlda) mva_qi <- lm( ~ , mlda) sui_l <- lm( ~ over21 + age, mlda) sui_qi <- lm( ~ , mlda) hom_l <- lm( ~ over21 + age, mlda) hom_qi <- lm( ~ , mlda) R Code ! Start Over ▶ Run Code % Error: Unknown statistic in ‘omit.stat’ argument. stargazer( mva_l, mva_qi,sui_l, sui_qi, hom_l, hom dep.var.caption = "Deaths per 100,000", add.lines = list( c("Specification", "linear", "quadrati "linear", "quadrati "linear", "quadrati c("", "", "interact "", "interact "", "interact ), omit.stat = c("adj.rsq ","ser ","f"), type = "html", title="Table 2. Estimated effects on MLD header = FALSE ) 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 8 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis The results in Table 2 suggest that MVA deaths increased by The results in Table 2 suggest that MVA deaths increased by _____ to _____ (round to two decimals) at age 21, depending _____ to _____ (round to two decimals) at age 21, depending on the whether we use a simple _____ on the whether we use a simple _____ (linear/quadratic/polynomial) or flexible _____ (linear/quadratic/polynomial) or flexible _____ (linear/quadratic/polynomial) specification. (linear/quadratic/polynomial) specification. answer 1, answer 2, answer 3, answer 4 Question 15: The estimated e " ects on MVA deaths are statistically significant The estimated e " ects on MVA deaths are statistically significant at the _____ % level. at the _____ % level. 1 Correct! Question 16: The MVA e " ect reported in Column (2) and the baseline MVA The MVA e " ect reported in Column (2) and the baseline MVA death rate of 32.5 suggests an increase in MVA deaths of _____ death rate of 32.5 suggests an increase in MVA deaths of _____ percent (report 1 decimal place), which (is/is not) _____ percent (report 1 decimal place), which (is/is not) _____ consistent with CD’s MVA findings. consistent with CD’s MVA findings. 14.3, is Correct! Question 17: The results in Table 2 suggest that suicides increased by _____ The results in Table 2 suggest that suicides increased by _____ to _____ (round to two decimals) at age 21, depending on the to _____ (round to two decimals) at age 21, depending on the whether we use a simple _____ (linear/quadratic/polynomial) whether we use a simple _____ (linear/quadratic/polynomial) or flexible _____ (linear/quadratic/polynomial) specification. or flexible _____ (linear/quadratic/polynomial) specification. answer 1, answer 2, answer 3, answer 4 Submit Answer Submit Answer

11/6/23, 2 : 09 PM Assignment 8: Regression Discontinuity Page 10 of 10 https://chris-cornwell.shinyapps.io/Assignment8/#section-part-b-empirical-analysis