Suppose that you want to study the effect of occupational licensing on quality of care received atnursing homes. Suppose further that you come across a policy which states that facilities with fewerthan 100 beds are not required to hire licensed workers, while those with over 100 beds are requiredto hire licensed workers. Suppose further you assume that facilities with fewer than 100 beds aresimilar to facilities with just over 100 beds (as if it is random which facilities fall on which side of thethreshold). Given this description, the most straightforward method you can use to identify thecausal effect of licensing requirement on quality of care is:Difference-in-differences (diff-in-diff)Instrumental variables (IV)Regression discontinuity design (RDD)

According to the case, the are many variables that can not be neglected. Example:- Beds, licensed…

Answered: han 100 beds are not required to hire…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 37P

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