(2) This example is loosely based on actual studies Researches le puted daily data ce COVID infection from two states, w

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2 This Example Is Loosely Based On Actual Studies Researches Le Puted Daily Data Ce Covid Infection From Two States W 1 (36.44 KiB) Viewed 23 times

(2) This example is loosely based on actual studies Researches le puted daily data ce COVID infection from two states, which we'll call State At State B. During the timor period stand. State Aited no rotrictiorelated to COVID, while State Band down" (close bars and restaurants and limiting the size of gathering) halfway through this time period, which remained in effect for the rest of the time included in the data. The most to a differences in differences Teetch design to estimate the effect of dots tew daily COVID The graph below plots daily infections in the two states over the time period (day). The vertical line indicates that State Babutdown wat into effect starting on the 21st day. (Note that in reality w might expect the impact of such a shutdown to take a week or two to show up in the cost of new infections, which are really new dishes of previous infections, but bereken actually be the number of people who we newly infected on each date, not the mer of people who were previtaly infected and cingiced on a certain date) State A State B 009 OOS 400 COVID cases ODE 200 100 0 10 20 day (a) Explain what the parallel trends emption for the dire in differences designs this example and whether, based on the ph, it seems to be reasonable bere (b) Explain what you would stimuuto (roughly) was the effect of the restrictions on imtis? (Hint: look at the y-axis Inbels to get an idea of what a genetical distance on the map men and compare the distance between the two states before tout is started on a well as alter treatment is switched for state B). Be sure to gain why you can that colo give the data, der the sumptions of the differences in die model