Instructions

– Please submit your work in one zip file containing three files: a) write up of your answers (including tables), b) $\log \text { file, }$, and c) do-file that works with your matched data set.
– Please read the manuscript “Demand for Ultrasonography: Roles of Price Framing and Sex Information” to understand the study setting and design. You will be asked to conduct an empirical analysis using a sampled dataset from this study.
– Each student is assigned with a unique dataset. Look up your matched Midterm ID number and download your assigned data set “Midterm_M2_2022_ID[\#].dta” from the Moodle page. If your answers do not match with your assigned dataset (i.e. use another person’s dataset) you will receive 0 points.
– For description of variables, please refer to “Midterm_M2_2022_codebook.xlsx”.

Questions

1. [20 points] Non-data questions.
a. (5 points) The study involves randomization of two treatments. What are these treatments? One of the main outcomes is take-up of ultrasonography. How is this measured?
b. (5 points) What is the identification strategy to find the causal effects of these treatments mentioned in part a.? What is the key assumption of this strategy?
c. (10 points) There are three hypotheses that are of interest (refer to manuscript). In part 2, you will be asked to test each of these hypotheses using the provided dataset. Here, for each hypothesis, write the regression specification that you will estimate to test the hypothesis.
2. [40 points] Data questions. For each question, report the results in a table and comment on the findings. Specifically, report the coefficient estimates along with the standard errors and $\mathrm{p}$-values and comment on the statistical significance. The variables that you are supposed to use are provided below each question.
a. (10 points) Conduct a balance check with baseline characteristics (listed below) to test if treatments were randomly assigned across different treatment groups. Report the results of the balance check in one table.

Baseline characteristics: hhmem1_age educ_year nboys ngirls prefer_son_nxt prefer_dau_nxt health_good asset_index compute_score heardof_ultrasound ultrasound_purpose_fetalgrowth ultrasound_purpose_fetalsex ultrasound_safety_toself ultrasound_safety_tobaby ultrasound_healthinfo_accuracy ultrasound_sexinfo_accuracy abortion_where married child_die child_lost preg_month
b. (10 points) Test Hypotheses A and B first without fixed effects in the regression and second with fixed effects in the regression. Do the results depend on the inclusion of fixed effects? Explain your answer.

Midterm Exam Econ 6074: Causal Inference Module 2 2021/2022

Introduction to probability and stochastic porcesses

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