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1. In the lecture on Duflo's paper, evaluating the effectiveness of Indonesian School Expansion
program, we discussed the difference-in-difference estimation method. The above table shows
the average education (years of schooling) of population of who reside in high treatment vs low-
treatment intensity area for those who are young (exposed to the school expansion program) vs
old cohorts (not exposed to school expansion program). a. D 11 = E 1 E 3 . How do you interpret
D11 ? b. D 22 = E 3 E 4 . How do you interpret D 22 ? c. How do you interpret DDb? Does the
school expansion program improve education outcome? By how much?

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1- In the lecture on Duflo's paper- evaluating the effectiveness of In.docx

  • 1. 1. In the lecture on Duflo's paper, evaluating the effectiveness of Indonesian School Expansion program, we discussed the difference-in-difference estimation method. The above table shows the average education (years of schooling) of population of who reside in high treatment vs low- treatment intensity area for those who are young (exposed to the school expansion program) vs old cohorts (not exposed to school expansion program). a. D 11 = E 1 E 3 . How do you interpret D11 ? b. D 22 = E 3 E 4 . How do you interpret D 22 ? c. How do you interpret DDb? Does the school expansion program improve education outcome? By how much?