[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.40,0:00:05.70,Default,,0000,0000,0000,,The path from cause to effect\Nis dark and dangerous,
Dialogue: 0,0:00:05.70,0:00:08.90,Default,,0000,0000,0000,,but the weapons\Nof econometrics are strong,
Dialogue: 0,0:00:09.70,0:00:13.70,Default,,0000,0000,0000,,wield differences-in-differences\Nwhen witnessing parallel trends.
Dialogue: 0,0:00:14.45,0:00:17.00,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,0:00:20.10,0:00:21.42,Default,,0000,0000,0000,,Masters of metrics
Dialogue: 0,0:00:21.42,0:00:24.80,Default,,0000,0000,0000,,look for convincing\Nceteris paribus comparisons.
Dialogue: 0,0:00:25.10,0:00:29.42,Default,,0000,0000,0000,,The ideal comparison contrasts\Ntreatment and control groups
Dialogue: 0,0:00:29.42,0:00:30.60,Default,,0000,0000,0000,,that look similar.
Dialogue: 0,0:00:30.60,0:00:34.70,Default,,0000,0000,0000,,But sometimes this sort\Nof comparability is elusive.
Dialogue: 0,0:00:34.70,0:00:36.80,Default,,0000,0000,0000,,When treatment and control groups
Dialogue: 0,0:00:36.80,0:00:40.10,Default,,0000,0000,0000,,evolve similarly\Nin the absence of treatment,
Dialogue: 0,0:00:40.10,0:00:42.31,Default,,0000,0000,0000,,even if from different\Nstarting points,
Dialogue: 0,0:00:42.31,0:00:44.90,Default,,0000,0000,0000,,there's hope for causal inference.
Dialogue: 0,0:00:45.60,0:00:48.40,Default,,0000,0000,0000,,The weapon that exploits\Nparallel evolution,
Dialogue: 0,0:00:48.66,0:00:50.89,Default,,0000,0000,0000,,masters say parallel trends,
Dialogue: 0,0:00:50.89,0:00:53.36,Default,,0000,0000,0000,,is called differences-in-differences...
Dialogue: 0,0:00:53.36,0:00:54.30,Default,,0000,0000,0000,,(voice whispering)\NDifferences-in-differences
Dialogue: 0,0:00:54.40,0:00:56.90,Default,,0000,0000,0000,,- ...or DD for short.\N- Alright. Nice.
Dialogue: 0,0:00:56.90,0:00:59.99,Default,,0000,0000,0000,,Let's see how DD\Ncan help us understand
Dialogue: 0,0:00:59.99,0:01:03.06,Default,,0000,0000,0000,,one of the most important\Neconomic events
Dialogue: 0,0:01:03.06,0:01:04.37,Default,,0000,0000,0000,,in US history.
Dialogue: 0,0:01:05.30,0:01:08.30,Default,,0000,0000,0000,,Look back with me now\Nat the Great Depression--
Dialogue: 0,0:01:08.80,0:01:12.20,Default,,0000,0000,0000,,the worst economic catastrophe,\Nour country has ever known.
Dialogue: 0,0:01:13.10,0:01:16.20,Default,,0000,0000,0000,,Unemployment hit 25% in 1933--
Dialogue: 0,0:01:16.60,0:01:19.51,Default,,0000,0000,0000,,a level not seen before or since.
Dialogue: 0,0:01:19.51,0:01:22.10,Default,,0000,0000,0000,,Millions lost their homes\Nor their land.
Dialogue: 0,0:01:22.60,0:01:24.74,Default,,0000,0000,0000,,Suicide spiked, and hungry families
Dialogue: 0,0:01:24.74,0:01:26.77,Default,,0000,0000,0000,,relied on soup kitchens\Nand bread lines
Dialogue: 0,0:01:26.77,0:01:28.16,Default,,0000,0000,0000,,to keep from starving.
Dialogue: 0,0:01:29.40,0:01:34.00,Default,,0000,0000,0000,,Economists argue fiercely over\Nthe causes of the Great Depression.
Dialogue: 0,0:01:34.00,0:01:36.98,Default,,0000,0000,0000,,Most agree, however,\Nthat a key piece of the puzzle
Dialogue: 0,0:01:36.98,0:01:39.62,Default,,0000,0000,0000,,is an epidemic of bank failures.
Dialogue: 0,0:01:39.80,0:01:41.90,Default,,0000,0000,0000,,This was before deposit insurance.
Dialogue: 0,0:01:42.10,0:01:46.49,Default,,0000,0000,0000,,So if your bank went bankrupt,\Nyour savings disappeared with it,
Dialogue: 0,0:01:52.60,0:01:56.10,Default,,0000,0000,0000,,Faced with a banking crisis,\Nthe central bank has a choice:
Dialogue: 0,0:01:56.40,0:01:58.52,Default,,0000,0000,0000,,lend freely to troubled banks
Dialogue: 0,0:01:58.52,0:02:01.10,Default,,0000,0000,0000,,or stand aside and refuse to lend.
Dialogue: 0,0:02:01.50,0:02:05.44,Default,,0000,0000,0000,,Lending freely to banks in trouble\Nis called easy money.
Dialogue: 0,0:02:05.44,0:02:08.10,Default,,0000,0000,0000,,Refusing to lend is called tight money.
Dialogue: 0,0:02:10.20,0:02:12.87,Default,,0000,0000,0000,,Monetarist masters Milton Friedman\Nand Anna Schwartz
Dialogue: 0,0:02:12.87,0:02:14.61,Default,,0000,0000,0000,,famously called\Nthe Great Depression
Dialogue: 0,0:02:14.61,0:02:16.35,Default,,0000,0000,0000,,the "Great Contraction,"
Dialogue: 0,0:02:16.80,0:02:18.37,Default,,0000,0000,0000,,accusing the Federal Reserve
Dialogue: 0,0:02:18.37,0:02:21.20,Default,,0000,0000,0000,,of inflicting a misguided policy\Nof tight money
Dialogue: 0,0:02:21.20,0:02:24.00,Default,,0000,0000,0000,,on the nation's teetering\Nfinancial institutions.
Dialogue: 0,0:02:24.40,0:02:25.87,Default,,0000,0000,0000,,They argued that easy money
Dialogue: 0,0:02:25.87,0:02:27.98,Default,,0000,0000,0000,,would have kept\Nmany banks in business,
Dialogue: 0,0:02:27.98,0:02:29.70,Default,,0000,0000,0000,,shortening the Great Depression,
Dialogue: 0,0:02:30.40,0:02:32.24,Default,,0000,0000,0000,,But others disagree!
Dialogue: 0,0:02:32.24,0:02:33.77,Default,,0000,0000,0000,,If banks are insolvent
Dialogue: 0,0:02:33.77,0:02:35.95,Default,,0000,0000,0000,,because of unwise\Nlending decisions,
Dialogue: 0,0:02:35.95,0:02:38.90,Default,,0000,0000,0000,,then bailouts just encourage\Nmore foolishness.
Dialogue: 0,0:02:39.60,0:02:42.96,Default,,0000,0000,0000,,Economists call this problem\N"moral hazard."
Dialogue: 0,0:02:42.96,0:02:46.10,Default,,0000,0000,0000,,The debate over bailouts\Nin moral hazard continues today.
Dialogue: 0,0:02:46.50,0:02:48.60,Default,,0000,0000,0000,,Should financial behemoth\NLehman Brothers
Dialogue: 0,0:02:48.60,0:02:51.50,Default,,0000,0000,0000,,had been allowed to fail\Non the eve of the Great Recession,
Dialogue: 0,0:02:52.00,0:02:54.70,Default,,0000,0000,0000,,in an ideal world,\Nwe'd answer this question
Dialogue: 0,0:02:54.70,0:02:58.40,Default,,0000,0000,0000,,applying different Fed policies\Nto randomly selected regions.
Dialogue: 0,0:02:59.00,0:03:00.25,Default,,0000,0000,0000,,But we can still learn a lot
Dialogue: 0,0:03:00.25,0:03:02.12,Default,,0000,0000,0000,,by using differences-in-differences
Dialogue: 0,0:03:02.12,0:03:06.30,Default,,0000,0000,0000,,to compare trends across areas\Nwith different monetary policies.
Dialogue: 0,0:03:10.90,0:03:12.52,Default,,0000,0000,0000,,How's that even possible?
Dialogue: 0,0:03:12.52,0:03:15.78,Default,,0000,0000,0000,,Don't the same Fed policies\Napply to all banks in the US?
Dialogue: 0,0:03:15.78,0:03:17.40,Default,,0000,0000,0000,,- Yeah.\N- Good question.
Dialogue: 0,0:03:17.70,0:03:21.48,Default,,0000,0000,0000,,The Federal Reserve System\Nis divided into 12 districts,
Dialogue: 0,0:03:21.48,0:03:24.30,Default,,0000,0000,0000,,each headed by a regional bank.
Dialogue: 0,0:03:24.30,0:03:27.47,Default,,0000,0000,0000,,Today, Fed policy is set\Nat the national level.
Dialogue: 0,0:03:27.47,0:03:32.20,Default,,0000,0000,0000,,But in the 1930s, regional Feds\Ncould do pretty much as they liked.
Dialogue: 0,0:03:32.20,0:03:33.28,Default,,0000,0000,0000,,Ah, interesting.
Dialogue: 0,0:03:33.28,0:03:35.50,Default,,0000,0000,0000,,And here's what's\Nso awesome about that.
Dialogue: 0,0:03:35.50,0:03:39.30,Default,,0000,0000,0000,,In 1930, the Atlanta Fed,\Nrunning the 6th District,
Dialogue: 0,0:03:39.30,0:03:41.47,Default,,0000,0000,0000,,followed an easy money policy,
Dialogue: 0,0:03:41.47,0:03:45.40,Default,,0000,0000,0000,,sending wheelbarrows of cash\Nto rescue insolvent institutions,
Dialogue: 0,0:03:45.90,0:03:48.82,Default,,0000,0000,0000,,The St. Louis Fed,\Nrunning the 8th District,
Dialogue: 0,0:03:48.82,0:03:50.67,Default,,0000,0000,0000,,followed a tight money policy.
Dialogue: 0,0:03:51.10,0:03:53.90,Default,,0000,0000,0000,,"Let fail the foolish!"\Nthey said in St. Louis.
Dialogue: 0,0:03:54.30,0:03:58.70,Default,,0000,0000,0000,,And so a natural experiment\Nin monetary policy was born.
Dialogue: 0,0:03:58.70,0:04:02.00,Default,,0000,0000,0000,,Even better, this is\Na within-state experiment.
Dialogue: 0,0:04:02.00,0:04:04.35,Default,,0000,0000,0000,,The border between the 6th\Nand the 8th districts
Dialogue: 0,0:04:04.35,0:04:06.76,Default,,0000,0000,0000,,ran smack through\Nthe middle of Mississippi.
Dialogue: 0,0:04:07.30,0:04:09.32,Default,,0000,0000,0000,,So northern Mississippi\Nhad tight money,
Dialogue: 0,0:04:09.32,0:04:11.87,Default,,0000,0000,0000,,while southern Mississippi\Nhad easy money,
Dialogue: 0,0:04:11.87,0:04:15.20,Default,,0000,0000,0000,,but under the same state laws\Nin banking regulations in both.
Dialogue: 0,0:04:15.77,0:04:16.85,Default,,0000,0000,0000,,The treatment group
Dialogue: 0,0:04:16.85,0:04:20.15,Default,,0000,0000,0000,,is the District 6th part\Nof Mississippi,
Dialogue: 0,0:04:20.15,0:04:23.10,Default,,0000,0000,0000,,which had access to easy money\Nduring the crisis.
Dialogue: 0,0:04:23.80,0:04:25.09,Default,,0000,0000,0000,,The control group
Dialogue: 0,0:04:25.09,0:04:27.80,Default,,0000,0000,0000,,is the District 8th part\Nof Mississippi,
Dialogue: 0,0:04:27.80,0:04:30.22,Default,,0000,0000,0000,,which had tight money\Nduring the crisis.
Dialogue: 0,0:04:31.30,0:04:34.04,Default,,0000,0000,0000,,The key year\Nin our natural experiment
Dialogue: 0,0:04:34.04,0:04:35.40,Default,,0000,0000,0000,,was 1930,
Dialogue: 0,0:04:35.80,0:04:37.56,Default,,0000,0000,0000,,Caldwell & Company,
Dialogue: 0,0:04:37.56,0:04:40.38,Default,,0000,0000,0000,,a massive financial empire\Nin the South
Dialogue: 0,0:04:40.38,0:04:41.99,Default,,0000,0000,0000,,came crashing down.
Dialogue: 0,0:04:42.70,0:04:46.00,Default,,0000,0000,0000,,Banking is a business\Nbuilt on confidence and trust.
Dialogue: 0,0:04:46.50,0:04:49.15,Default,,0000,0000,0000,,The Caldwell meltdown\Ncaused a panic
Dialogue: 0,0:04:49.15,0:04:53.05,Default,,0000,0000,0000,,that led to a widespread\Nbank run all at once.
Dialogue: 0,0:04:53.05,0:04:55.11,Default,,0000,0000,0000,,Depositors wanted their money back,
Dialogue: 0,0:04:55.11,0:04:58.20,Default,,0000,0000,0000,,causing banks to go bankrupt\Nand shut their doors.
Dialogue: 0,0:05:01.00,0:05:03.32,Default,,0000,0000,0000,,We'll use differences-in-differences
Dialogue: 0,0:05:03.32,0:05:06.61,Default,,0000,0000,0000,,to measure the effect\Nof contrasting monetary policies
Dialogue: 0,0:05:06.61,0:05:09.16,Default,,0000,0000,0000,,in response to the Caldwell crisis.
Dialogue: 0,0:05:12.50,0:05:16.44,Default,,0000,0000,0000,,This figure plots the number\Nof banks in Mississippi by year,
Dialogue: 0,0:05:16.44,0:05:19.27,Default,,0000,0000,0000,,for the 8th and 6th districts.
Dialogue: 0,0:05:19.27,0:05:24.20,Default,,0000,0000,0000,,Let's start in 1929 - a year\Nbefore the Caldwell crash.
Dialogue: 0,0:05:24.20,0:05:27.65,Default,,0000,0000,0000,,There are 169 banks\Nopen in the 8th,
Dialogue: 0,0:05:27.65,0:05:31.37,Default,,0000,0000,0000,,and 141 banks open in the 6th.
Dialogue: 0,0:05:31.37,0:05:32.78,Default,,0000,0000,0000,,Over the next year,
Dialogue: 0,0:05:32.78,0:05:37.00,Default,,0000,0000,0000,,we see a similar handful\Nof banks fail, in both districts.
Dialogue: 0,0:05:37.40,0:05:40.14,Default,,0000,0000,0000,,The change in the number\Nof banks in operation
Dialogue: 0,0:05:40.14,0:05:42.17,Default,,0000,0000,0000,,is remarkably similar.
Dialogue: 0,0:05:42.17,0:05:44.60,Default,,0000,0000,0000,,That's what parallel trends look like.
Dialogue: 0,0:05:45.50,0:05:48.78,Default,,0000,0000,0000,,In November 1930, Caldwell crashes,
Dialogue: 0,0:05:48.78,0:05:50.40,Default,,0000,0000,0000,,and the panic begins.
Dialogue: 0,0:05:51.20,0:05:53.25,Default,,0000,0000,0000,,Banks fail frequently in the 8th\Ndistrict,
Dialogue: 0,0:05:53.25,0:05:55.30,Default,,0000,0000,0000,,which had Tight money,
Dialogue: 0,0:05:55.80,0:06:00.10,Default,,0000,0000,0000,,but the decline is slower in the\N6th District which had easy money.
Dialogue: 0,0:06:00.80,0:06:03.00,Default,,0000,0000,0000,,The diverging Trends in this period,
Dialogue: 0,0:06:03.00,0:06:06.30,Default,,0000,0000,0000,,might be attributable to\Neasy versus Tight money
Dialogue: 0,0:06:06.60,0:06:11.80,Default,,0000,0000,0000,,in July, of 1931, the 8th\NDistrict, abandons type money.
Dialogue: 0,0:06:11.90,0:06:14.20,Default,,0000,0000,0000,,So now both districts are easy.
Dialogue: 0,0:06:14.70,0:06:16.90,Default,,0000,0000,0000,,Parallel Trends are restored
Dialogue: 0,0:06:17.30,0:06:22.20,Default,,0000,0000,0000,,in a counterfactual world where the sixth\Ndistrict follows a Tight money policy.
Dialogue: 0,0:06:22.50,0:06:23.80,Default,,0000,0000,0000,,What might have happened
Dialogue: 0,0:06:24.30,0:06:28.40,Default,,0000,0000,0000,,if we extrapolate the trend of\Nthe 8th District to the sixth,
Dialogue: 0,0:06:28.50,0:06:29.90,Default,,0000,0000,0000,,it would look like this.
Dialogue: 0,0:06:30.40,0:06:30.70,Default,,0000,0000,0000,,So
Dialogue: 0,0:06:30.80,0:06:35.90,Default,,0000,0000,0000,,The treatment effective easy money is\Nhow much the 6th District deviated From
Dialogue: 0,0:06:35.90,0:06:38.90,Default,,0000,0000,0000,,the Path implied by\Nthe 8th District trend.
Dialogue: 0,0:06:41.10,0:06:44.00,Default,,0000,0000,0000,,How many banks did the\NEasy Money treatment save
Dialogue: 0,0:06:44.00,0:06:49.80,Default,,0000,0000,0000,,this table reports data for the treatment\Ngroup District Six in the first row
Dialogue: 0,0:06:49.80,0:06:54.00,Default,,0000,0000,0000,,and data for the control group\NDistrict 8 in the second row.
Dialogue: 0,0:06:54.00,0:06:57.40,Default,,0000,0000,0000,,The First Column shows the\Nnumber of banks in business,
Dialogue: 0,0:06:57.40,0:07:03.40,Default,,0000,0000,0000,,before The Crisis began in 1930.\NThe second column shows 1931.
Dialogue: 0,0:07:03.40,0:07:08.90,Default,,0000,0000,0000,,This is the key period when each district\Nhad differing monetary policies during
Dialogue: 0,0:07:08.90,0:07:10.90,Default,,0000,0000,0000,,the crisis the rightmost.
Dialogue: 0,0:07:11.20,0:07:11.60,Default,,0000,0000,0000,,Column
Dialogue: 0,0:07:11.70,0:07:18.00,Default,,0000,0000,0000,,reports changes within the district\Ndistrict, 6 lost 14 Banks while District
Dialogue: 0,0:07:18.10,0:07:23.80,Default,,0000,0000,0000,,8 lost 33, the mathematical formula\Nfor the treatment effect is simple.
Dialogue: 0,0:07:24.40,0:07:28.70,Default,,0000,0000,0000,,We subtract the change in banks\Nin operation, in the 8th District
Dialogue: 0,0:07:28.90,0:07:32.20,Default,,0000,0000,0000,,from the change in banks\Nin operation in the sixth.
Dialogue: 0,0:07:32.80,0:07:35.70,Default,,0000,0000,0000,,Hence. The name\Ndifferences in differences,
Dialogue: 0,0:07:37.00,0:07:40.90,Default,,0000,0000,0000,,negative 14, minus negative, 33 equals 9.
Dialogue: 0,0:07:41.10,0:07:41.60,Default,,0000,0000,0000,,19.
Dialogue: 0,0:07:42.50,0:07:46.80,Default,,0000,0000,0000,,We estimate that 19 Banks\Nwere saved by easy money
Dialogue: 0,0:07:47.30,0:07:51.70,Default,,0000,0000,0000,,in practice tables and figures like\Nthose shown here are the beginning
Dialogue: 0,0:07:51.80,0:07:54.30,Default,,0000,0000,0000,,rather than the end of a DD analysis,
Dialogue: 0,0:07:55.40,0:08:00.00,Default,,0000,0000,0000,,the problem of how to gauge the\Nstatistical, significance of DD, estimates
Dialogue: 0,0:08:00.10,0:08:02.30,Default,,0000,0000,0000,,turns out to be exceedingly, tricky
Dialogue: 0,0:08:02.40,0:08:05.60,Default,,0000,0000,0000,,and a regression is typically\Npart of the solution,
Dialogue: 0,0:08:09.20,0:08:10.70,Default,,0000,0000,0000,,the key assumption behind a
Dialogue: 0,0:08:11.10,0:08:17.70,Default,,0000,0000,0000,,DD analysis is that of parallel Trends\Nrecall, the principle of ceteris paribus,
Dialogue: 0,0:08:17.90,0:08:21.70,Default,,0000,0000,0000,,our ideal comparison would have\Nthe two districts experienced,
Dialogue: 0,0:08:21.70,0:08:27.80,Default,,0000,0000,0000,,an identical business environment, except\Nfor one factor easy or tight money.
Dialogue: 0,0:08:29.20,0:08:33.50,Default,,0000,0000,0000,,Both districts would have identical\Ntypes of customers who would go bankrupt
Dialogue: 0,0:08:33.50,0:08:35.30,Default,,0000,0000,0000,,at exactly the same rate.
Dialogue: 0,0:08:35.70,0:08:38.60,Default,,0000,0000,0000,,The skill of their employees\Nwould be equal and so on
Dialogue: 0,0:08:39.20,0:08:43.40,Default,,0000,0000,0000,,perfect ceteris, paribus comparisons\Nwould allow us to clearly see
Dialogue: 0,0:08:43.60,0:08:48.70,Default,,0000,0000,0000,,the causal effect of different fed\Npolicies in this case, that's not possible.
Dialogue: 0,0:08:49.10,0:08:53.60,Default,,0000,0000,0000,,But the idea of parallel Trends\Nis based on a similar concept.
Dialogue: 0,0:08:53.60,0:08:57.90,Default,,0000,0000,0000,,If we see that the two regions\Nexperienced similar Trends in the number
Dialogue: 0,0:08:57.90,0:08:58.80,Default,,0000,0000,0000,,of banks over.
Dialogue: 0,0:08:59.00,0:09:04.00,Default,,0000,0000,0000,,Time in the absence of treatment, we\Ncan assume they are good comparisons.
Dialogue: 0,0:09:04.40,0:09:09.80,Default,,0000,0000,0000,,We see that the two districts move in\Nparallel both before the crisis. And after,
Dialogue: 0,0:09:10.10,0:09:12.40,Default,,0000,0000,0000,,when they have the same Fed policy,
Dialogue: 0,0:09:13.10,0:09:18.30,Default,,0000,0000,0000,,the only time the district's behave differently\Nis when the Fed policy is different.
Dialogue: 0,0:09:19.40,0:09:26.70,Default,,0000,0000,0000,,In view of this Fed policy is a likely\Ncause of diverging Trends from 1930 to 1931.
Dialogue: 0,0:09:27.80,0:09:31.80,Default,,0000,0000,0000,,But we should also check for other\Nchanges unique to northern, Mississippi.
Dialogue: 0,0:09:32.30,0:09:33.20,Default,,0000,0000,0000,,What do you mean?
Dialogue: 0,0:09:33.50,0:09:39.10,Default,,0000,0000,0000,,Imagine that bad tornadoes? Hit Northern,\Nbut not Southern. Mississippi in 1930,
Dialogue: 0,0:09:39.60,0:09:44.30,Default,,0000,0000,0000,,these tornadoes devastate Farms\Ncausing Farmers to default on loans,
Dialogue: 0,0:09:44.60,0:09:46.80,Default,,0000,0000,0000,,which drives their Banks out of business.
Dialogue: 0,0:09:47.40,0:09:52.20,Default,,0000,0000,0000,,Then the sixth and eighth districts\Nwould differ in not one, but two ways
Dialogue: 0,0:09:52.70,0:09:57.20,Default,,0000,0000,0000,,Fed policy, and whether and\Nwe'd have trouble identifying
Dialogue: 0,0:09:57.60,0:10:02.50,Default,,0000,0000,0000,,Policy as the causal Factor behind\Nincreased bank failures in the eighth.
Dialogue: 0,0:10:07.20,0:10:10.20,Default,,0000,0000,0000,,DD credibility lives or\Ndies with the claim that the
Dialogue: 0,0:10:10.20,0:10:13.60,Default,,0000,0000,0000,,only reason northern\NMississippi was special in 1930
Dialogue: 0,0:10:13.90,0:10:16.00,Default,,0000,0000,0000,,is differing. Regional Fed policy.
Dialogue: 0,0:10:16.60,0:10:22.10,Default,,0000,0000,0000,,We're in DD heaven with strong Visual\NEvidence of parallel Trend in general.
Dialogue: 0,0:10:22.20,0:10:24.20,Default,,0000,0000,0000,,The first step in evaluating whether
Dialogue: 0,0:10:24.20,0:10:30.20,Default,,0000,0000,0000,,to use DD is usually this type of\Nvisual confirmation of parallel Trends
Dialogue: 0,0:10:30.20,0:10:31.70,Default,,0000,0000,0000,,outside of the period.
Dialogue: 0,0:10:31.70,0:10:36.90,Default,,0000,0000,0000,,When we expect to see a treatment\Neffect, the treatment in our example,
Dialogue: 0,0:10:37.10,0:10:39.70,Default,,0000,0000,0000,,Easy money in the face of bank failures
Dialogue: 0,0:10:40.50,0:10:45.00,Default,,0000,0000,0000,,metrics Masters, use DD to\Nexplore effects of many policies
Dialogue: 0,0:10:45.80,0:10:47.90,Default,,0000,0000,0000,,like the minimum, legal drinking age,
Dialogue: 0,0:10:48.50,0:10:52.20,Default,,0000,0000,0000,,and environmental changes\Nlike access to clean water.
Dialogue: 0,0:10:52.90,0:10:54.20,Default,,0000,0000,0000,,In our next video.
Dialogue: 0,0:10:54.50,0:10:59.20,Default,,0000,0000,0000,,We'll see an example of how regression\Nis used to implement a DD approach.
Dialogue: 0,0:11:00.80,0:11:06.90,Default,,0000,0000,0000,,Are you a teacher click to explore ways to\Nuse these videos in class if your learner
Dialogue: 0,0:11:07.00,0:11:11.20,Default,,0000,0000,0000,,Make sure this video sticks by taking\Na few quick practice questions,
Dialogue: 0,0:11:11.60,0:11:14.20,Default,,0000,0000,0000,,or if you're ready.\NClick for the next video.
Dialogue: 0,0:11:14.60,0:11:20.00,Default,,0000,0000,0000,,You can also check out Mr. Use website for\Nmore courses, teacher resources and more.