Asked by Clara Candelario on Jun 11, 2024

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​Two important considerations during the difference-in-difference approach are

A) ​Representativeness,Reflectiveness
B) Injections,Leakages
C) Representativeness,Leakages
D) ​Reflectiveness,Injections

Representativeness

A heuristic in which an individual assesses the likelihood of an event by comparing it to an existing prototype in their mind.

Leakages

The outflow of economic resources or money from a system, such as savings, taxes, or imports, which can reduce domestic spending.

Reflectiveness

The ability or process of self-examination, exploring one's thoughts, feelings, and reasons behind one's actions.

  • Understand the nuances of representativeness and leakage in the framework of experimental design and their implications.
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Allena ValadezJun 13, 2024
Final Answer :
C
Explanation :
The two important considerations during the difference-in-difference approach are representativeness and leakages. Representativeness refers to the extent to which the treatment and control groups are similar in their characteristics and composition, which is necessary for a valid comparison. Leakages refer to any spillover effects or external factors that may affect the treatment group but not the control group, which can bias the results. Therefore, C is the best choice as it accurately describes the important considerations in this approach.