I am trying to answer the following question related to econometrics:
We have a sample consisting of a cross-section of individuals in 2016 plus another cross-section of different individuals in 2018. We believe that, in 2017, a natural experiment took place affecting individuals of a particular type (the ‘treatment group’) and not affecting individuals of other types (the ‘control group’). Both types were present in our two samples. We are thinking of running a differences-in-differences estimation.
I would like to know whether:
- With the sample that we have, is this estimation feasible?
- If the estimation is indeed feasible, then why so?
If possible, please provide a detailed answer, for me to go over.