# Questions tagged [treatment-effect]

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### Difference between unconfoundedness and parallel trends

I understand the unconfoundedness (selection on observables) assumption to be that the expected value of an outcome is independent of treatment after controlling for observed regressors (since these ...
• 91
1 vote
49 views

### Event Study and Diff-n-Diff

I'm struggling to understand the difference between Event Studies and Difference-in-Difference regressions. Both seem to have a discreet event that is assumed to cause some change of interest, subject ...
• 341
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### Assessing multiple Treatment Effects in Overlapping Interventions for difference-in-difference

I am currently working on evaluating the impact of two sequential treatments, Treatment 1 and Treatment 2, on two distinct groups in our country: Group A and Group B. Treatment 1 is administered at ...
• 111
1 vote
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### Considering employment when estimating treatment effect on wage RCT

Suppose I run a RCT where the treatment is educating high school students. Outcome variable of interest $y$ is the wage the student will earn after graduating from high school. Suppose there is no non-...
• 115
1 vote
277 views

### Diff-in-diff with two control groups: compare parallel trends

Suppose in a diff-in-diff problem, I have two control groups, but just one can be used as comparison, so I want to check which of them provides a better comparison. My idea is to compare the parallel ...
• 181
35 views

### Two-way fixed effects with two treatments and interaction between both treatments

I am interested in estimating the effect of two different treatments (T1 and T2) and the interaction of the two (T1 x T2) in a two-way fixed effects event-study design. Both T1 and T2 have a "...
• 21
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### Articles on the definition of causality in Economics

I am looking for illustrative "soft" articles on the definition of causality of Economics. Something to assign as a reading in a causal inference course. Any ideas?
• 1,843
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### Sufficiency of CIA for identification in constant effects linear model

Everything is from page 58-59 of Mostly Harmless Econometrics (Angrist & Pischke, 2009) Assume the following causal constant effects model: Potential outcomes of person $i$ as a function of $s$ ...
• 805
124 views

### Difference in differences with one post and two treatment variables

I want to test the following hypotheses with a difference in differences (DiD) OLS model: 1. The post grant effect on the dependent variable is stronger for patents with at least one rejection than ...
• 123
1 vote
28 views

### Asking for the definition of various types of treatment?

Borusyak (2021) writes the following: We further discuss the implications of our results when treatment is simultaneous rather than staggered, when it can switch on and off, and when multiple ...
• 1,160
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### Missing values in difference-in-differences

To give a background of the problem: I'm performing a difference-in-differences analysis to estimate the effect of a treatment, say A. I have a panel data with 5 rounds and about 3000 observations in ...
• 185
1 vote
103 views

### Is there any intuitive example for multi-valued treatment?

The definition from Wikipedia about multi-valued treatment is quite ambiguous to me, is there any other simpler definition or intuitive example for this term?
• 1,160
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### What should we conclude when the significant levels are different but the sign are similar among coefficients of variable of interest?

I saw the impact of anticollusion laws on dependent variables Y across the country by using generalized DID by following Dasgupta, 2019. The identification is: $Y_{it}$ = $\alpha$ + $\beta$ $(pt)_{kt}$...
• 1,160
1 vote
159 views

### IV estimate for entire sample is larger than IV estimates for subsets of sample?

I am using two-stage least squares to estimate a local average treatment effect, with 'treatment' being the endogenous variable and 'assignment to treatment' being the instrument. If I use my full ...
50 views

### Synthetic control question on donors

I'm using synthetic control methods. The treatment group has covariates that are the extrema of the values across itself and all potential donor units. So, say, on covariate $x_1$, the treatment unit ...
80 views

### Matching unpopularity

It seems that in economics, matching techniques (such as pscore, covariate matching, regression adjustment) are not as popular as selection-on-unobservables techniques (such as DiD, IV). Indeed I ...
21 views

### How to calculate and interpret a marginal treatment effect (local instrumental variable)? (Intuition through simple example.)

I am working on the intuition behind local instrumental variables (LIV), also known as the marginal treatment effect (MTE). I have worked some time on this and would benefit from solving a simple. I ...
• 121
1 vote
206 views

### CIA and Exclusion restriction

I have recently got myself confused about CIA and wondered if somebody could perhaps help me disentangle my thoughts. Consider the regression $Y_i = \alpha_0 + \Delta D_i + \beta X_i + \eta_i$ Where ...
• 317
64 views

### Imbens and Angrist (1994): the $D_i(z)$ variables

I'm referring to the Econometrica (1994) paper by Imbens and Angrist. In particular, I don't really understand the random variables $D_i(z)$ (defined on page 468). Could you please provide me with ...
• 193
1 vote
359 views

### What is a good AUSTERITY indicator?

I am writing a paper on European poverty and I am using a treatment control setup similar to Difference-in-Difference methods. Now, since the data I am using is rather recent, I would like to ...
Suppose you are running a randomized experiment to assess the effect of $X$, say some training program for unemployed people, on $Y$, say the chance of finding a job in the coming year. Suppose also ...