Question

For the scenarios below, please say what evaluation approach you would use (Randomization, IV, RD, Diff-in-diff) and provide details on how you would set up your evaluation (data needed and regression model, specifying dependent variables and explanatory variables).

Q. The lost boys of Neverland build a few artificial reefs around several of their coastal villages. Artificial reefs are great for marine life and are believed to stimulate tourism. Yet, as any good economist, the lost boys don’t want to take things for granted. They want to know whether the artificial reefs they built indeed helped local businesses. They ask you to do the evaluation. What evaluation approach would you suggest and what data would you ask for/collect?

Answer 1

In the given scenario, the control statistical approach that we use must be based on the time estimate study using the observational data using the level of treatments of the new land boys namely the treatment group and then the customers where the treatment of the boys considered to be independent variable and the impact would be dependent on treatment which tells us that this is a dependent variable. This sort of system is usually used in a Diff in Diff statistical analysis on the whole. The data I would ask for is to tell about the various processes used and the amount of revenue through the customers over a period of time which is indeed the correct form of measuring the relationship between dependent and independent variables on the whole.