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I have data on households which can be eligible for a conditional cash transfer (CCT) if household income is below a threshold. The CCT is introduced in year t for eg. Now some households which have income below threshold before year t, have income above threshold after year t, and vice versa. In short, some households are changing status between treatment/control group before and after the policy year. Can a D-i-D framework be appropriate in this situation? Or is a discontinuity design more appropriate to obtain causal effect of the CCT?

Thanks

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  • $\begingroup$ Aren’t the households with the most changes/switches the ones right at the threshold? $\endgroup$ Mar 6, 2022 at 7:50

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