RES-ECON 162- Midterm Exam Guide - Comprehensive Notes for the exam ( 29 pages long!)
11 Oct 2017
School
Department
Course
Professor
Document Summary
Low levels of crime are followed by high levels of crime. Lead exposure and brain damage- in the early 90s, we predicted lead exposure caused brain damage but then later found out that exposure is associated with general plasticity issues and pre-frontal cortex deterioration. The culprit was a gas additive tetraethyl lead invented in. Lead settled in soil also doesn"t decay quickly. Just because two curves are moving with each other does not mean they are correlated. Randomly sample from population of children, then randomly assign to control and treatment, then observe behavior over time and compare. Second best method: exploit exogenous variation in nature random experiment and you cant change anything about it. Some states have more lead exposure than others (variation) Clean air act- 1970s remove lead from the atmosphere. Each state got a different level of emissions reductions (exogenous variation. ) Epa is investing money differently into each state.
