Imagine the NZ Government is interested in the effect of abolishing university fees on the number of university graduates. To test this policy, the Government implements this policy on the North Island and not on the South Island. The table below shows the number of university graduates on the North Island and the South Island before and after the policy. Before policy After policy North Island 75,000 85,000 South Island 60,000 50,000 What is the difference-in-difference estimate of the effect of the policy? a. 15,000 b. 20,000 c. 20,000 d. -15,000

Imagine the NZ Government is interested in the effect of abolishing university fees on the number of university graduates. To test this policy, the Government implements this policy on the North Island and not on the South Island. The table below shows the number of university graduates on the North Island and the South Island before and after the policy. Before policy After policy North Island 75,000 85,000 South Island 60,000 50,000 What is the difference-in-difference estimate of the effect of the policy? a. 15,000 b. 20,000 c. 20,000 d. -15,000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 40P: Assume that the supply of law-skilled worker is fairly elastic, but the employers demand for such...

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