E. Is unemployment rate a determinant of the murder rate in this data? Answer "YES" or "NO"______________. F. Is the treatment effect statistically significant at the 95% confidence level? That is, did removing the assault weapons ban have a statistically significant effect on the murder rate? Hint: Think about which coefficient we care about in a diff-in-diff set up. Answer "YES" or "NO"._____________. G. Does running this as a two-way fixed effects model make sense? Answer by inputting the number that is associated with the correct statement:______________.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4: Estimating Demand
Section: Chapter Questions
Problem 1.4CE
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E. Is unemployment rate a determinant of the murder rate in this data? Answer "YES" or "NO"______________. F. Is the treatment effect statistically significant at the 95% confidence level? That is, did removing the assault weapons ban have a statistically significant effect on the murder rate? Hint: Think about which coefficient we care about in a diff-in-diff set up. Answer "YES" or "NO"._____________. G. Does running this as a two-way fixed effects model make sense? Answer by inputting the number that is associated with the correct statement:______________.
Firing Blanks?
The following is analysis from my senior undergraduate thesis from 2015 (when I was an Anteater;
Zot Zot) examining the effect of California's assault weapon's ban on crime rates. This paper uses a
modified difference-in-difference estimator. The treatment group is Non-CA states, who let the
federal assault weapons ban in 2004 lapse while California maintained a state assault weapons ban,
serving as our control. The data examines per capita crime, various controls, as well as
treatment/control and pre/post treatment for counties that lie exactly on the border of CA with
Nevada, Oregon, and Arizona. I estimated the following regression:
In(Murder) = -8.36 – 0.02 Povertyt – 0.06CountyUnemployment
(0.03)
(5.57)
(0.08)
- 0.14(POST × Treat)
(0.35)
The interaction term, Post X Treat measures the interaction between counties within the treatment
states.
Round to 2 decimal places and include a negative sign if necessary.
Transcribed Image Text:Firing Blanks? The following is analysis from my senior undergraduate thesis from 2015 (when I was an Anteater; Zot Zot) examining the effect of California's assault weapon's ban on crime rates. This paper uses a modified difference-in-difference estimator. The treatment group is Non-CA states, who let the federal assault weapons ban in 2004 lapse while California maintained a state assault weapons ban, serving as our control. The data examines per capita crime, various controls, as well as treatment/control and pre/post treatment for counties that lie exactly on the border of CA with Nevada, Oregon, and Arizona. I estimated the following regression: In(Murder) = -8.36 – 0.02 Povertyt – 0.06CountyUnemployment (0.03) (5.57) (0.08) - 0.14(POST × Treat) (0.35) The interaction term, Post X Treat measures the interaction between counties within the treatment states. Round to 2 decimal places and include a negative sign if necessary.
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