POLS 208 Lecture Notes - Lecture 15: Anuja Iyer, Null Hypothesis, Data Set

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Minimum wage: how do minimum wage increases affect employment in the fast food industry, virtually all believe the effect is negative, still part of the debate, alan krueger says maybe not, asst. Secretary of the treasury for econ policy (2009-2010: card & krueger. Time varying confounders: solution: differences in differences design. A new law required girls under 18 to have parental permission to obtain abortions. Placebo tests: two-fold strategy, show that a hypothesized causal effect is statistically significant, show that a hypothesized effect of zero is, in fact, zero, pla(cid:272)e(cid:271)o test: the hypothesized effe(cid:272)t appears (cid:449)here it should a(cid:374)d (cid:374)ot (cid:449)here it should(cid:374)"t. Regression discontinuity: addresses problem of confounding variables, requires some administrative cut-point. Continuity assumption: nothing changes at the cutpoint other than treatment status, things would have continued as before if not for change in treatment status, must be met for valid rd.

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