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1.Explain the difference between the results presented in Tables 1 and 2. How does the difference in difference estimator establish the main result? 2. Explain each of the robustness results presented...

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1.Explain the difference between the results presented in Tables 1 and 2. How does the difference in difference estimator establish the main result?
2. Explain each of the robustness results presented in Table 5. Explain the result of the quantile regressions in Table 6. How do the quantile results relate to Figures 1 and 2?
3. Describe in detail the basis for the 3rd and 4th arguments supporting collusion as an explanation for the main results.
4. Describe in detail the basis for the 5th and 6th arguments supporting collusion as an explanation for the main results.
Answered Same Day Apr 21, 2021

Solution

Neenisha answered on Apr 21 2021
147 Votes
1. In table 1 we don’t have control groups whereas in Table 2 we have control groups which is changing VAT rates.
In table 1 we see, that the post indicator variable after deregulation is significant at 5% level of significance and the coefficient is -0.077 which means that it is having negative impact on prices.
In table 2, where control group is added, post indicator variable becomes insignificant i.e. it does not affect the prices whereas the interaction effect between treatment and post is significant with coefficient as -0.101.
2. Table 5 represents that in model with regulated and unregulated products the interaction effect between treatment fruits and similarly with vegetables is having significant impact on prices....
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