In which of the following cases would you want to use difference-in-difference estimation?
A)When individuals non-randomly select different outcomes of the dependent variable.
B)When you are attempting to replicate a randomized clinical trial.
C)When you are dealing with non-negative count data.
D)When you suspect that the marginal effects are different for different values of the dependent variable.

Question

Quizplus · Accepted Answer

Difference-in-difference estimation is particularly useful when trying to replicate a randomized clinical trial. It is a quasi-experimental design that compares the change in the outcome variable over time between a treatment group and a control group. This is particularly useful in situations where it is not ethical or feasible to conduct a randomized trial. The other options do not necessarily require difference-in-difference estimation to be the best choice.

In Which of the Following Cases Would You Want to Use