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DON'T PANIC! The core methods in today's econometric toolkit are linear regression for statistical control, instrumental variables methods for the analysis of natural experiments, and differences-in-differences methods that exploit policy changes. In the modern experimentalist paradigm, these techniques answer clear causal questions such as: Do smaller classes increase learning? Do minimum wages reduce employment? Should wife batterers be arrested? How much does education raise earnings? Mostly Harmless Econometrics shows how the basic tools of applied econometrics allow the data to speak.
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