RESEV552: Foundations for Inference - Finance Assignment Help

Assignment Task:

Question 1

The benefit of randomly assigning individuals to the treatment or control groups is that the two groups should be similar, on average, in terms of their covariates. This is referred to as 'covariate balance.' Show that the treatment and control groups are balanced with respect to the income variable (`income`) by comparing its distribution between those in the treatment group and those in the control group. Interpret these two numbers.

Question 2

Individuals in the experiment were asked a series of questions both at the beginning and the end of the experiment. One such question was "Do you think the number of immigrants from Mexico who are permitted to come to the United States to live should be increased, left the same, or decreased?" The response to this question prior to the experiment is in the variable `numberim.pre`. The response to this question after the experiment is in the variable `numberim.post`. In both cases the variable is coded on a 1 -- 5 scale. Responses with values of 1 are ('pro-immigration') and responses with values of 5 are ('anti-immigration').  Compute the average treatment effect on the change in attitudes about immigration. That is, how does the mean change in attitudes about immigration policy for those in the control group compare to those in the treatment group. Interpret the result.

Question 3

Does having attended college influence the effect of being exposed to 'outsiders' on exclusionary attitudes? Another way to  ask the same question is this: is there evidence of a differential impact of treatment, conditional on attending college versus not attending college?  Calculate the necessary quantities to answer this question and interpret the results. Consider the average treatment effect for those who attended college and then those who did not.

Question 4

Repeat the same analysis as in the previous question but this time with respect to age and ideology.  For age, divide the data based on its quartile and compute the average treatment effect within each of the resulting four groups.  For ideology, compute the average treatment effect within each value. What patterns do you observe? Give a brief substantive interpretation of the results.

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