With panel data, the causal effect
A)cannot be estimated since correlation does not imply causation.
B)is typically estimated using the probit regression model.
C)can be estimated using the "differences-in-differences" estimator.
D)can be estimated by looking at the difference between the treatment and the control group after the treatment has taken place.

Question

Quizplus · Accepted Answer

The differences-in-differences estimator is a commonly used technique in panel data analysis to estimate causal effects over time. It involves comparing the changes in outcomes between a treatment group and a control group before and after the treatment is introduced. This accounts for any pre-existing differences between the two groups and isolates the effect of the treatment.

With Panel Data, the Causal Effect