Suppose you wanted to conduct an econometric study of the


Question: Suppose you wanted to conduct an econometric study of the impact of Head Start attendance on future earnings. You decide to define your treat-ment group as those children who attended Head Start and your control group as those with sim-ilar family backgrounds who did not attend Head Start. Why might such an analysis provide misleading results? What would be a more credible way of estimating the impact?

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Finance Basics: Suppose you wanted to conduct an econometric study of the
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