GEOLOGY 002 Lecture Notes - Lecture 13: Deeper Understanding, Sunk Costs, Permanent Normal Trade Relations
Document Summary
Did requires a parallel trend assumption, common time trend. Difference in differences requires data measured from a treatment group and a control group at two or more different time periods, specifically at least one time period before "treatment" and at least one time period after "treatment. " Q expected trend if nothing would have been d1 (p1-s1): examines employment for industries varying. Ntr gaps d2 d1 changed no policy change. The treatment group then receives or experiences the treatment and both groups are again measured at time 2. The surprisingly swift decline of us manufacturing employment, perce and. The paper links the sharp drop in us manufacturing employment after 200 to a change in the. Us trade policy that eliminated potential tariffs increases on chinese imports. Industries more exposed to the change experience greater employment loss, increased imports from china, and higher entry by us importers and foreign- owned chinese exporters.
