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→How it is tested?
The author compares adjacent county-pairs that straddle borders.
<boldb>QUESTION ABOUT EQUATION 11ON PG 22</boldb> : Why are the two <math>D</math> dummy variables summed?
Note that the same county can be in multiple pairs, and therefore is in the sample multiple times. This creates the need for multidimensional clustering as developed by Cameron et al, 2006. Standard errors are clustered for both within-state over time correlations of county residuals, as well as within borer-segment. Discussion of these in first paragraph of Section 5 on page 22.
