Questions tagged [treatment-effect]

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12 votes
3 answers
335 views

Self-selection bias during the course of experiments

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 ...
Martin Van der Linden's user avatar
4 votes
1 answer
79 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 ...
user31043's user avatar
3 votes
1 answer
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 ...
yurnero's user avatar
  • 193
3 votes
1 answer
1k views

How encouragement design works practically?

I'm trying to understand the encouragement design but I have some doubts. For example, if I want to introduce a voucher for teachers that can be used for professional development(the treatment) and I ...
Lex's user avatar
  • 235
2 votes
1 answer
56 views

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?
Papayapap's user avatar
  • 1,771
2 votes
1 answer
87 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 ...
Nils_Denter's user avatar
2 votes
0 answers
26 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 "...
aeiz's user avatar
  • 21
2 votes
0 answers
80 views

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 $s$ ...
user18214's user avatar
  • 805
2 votes
0 answers
166 views

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 ...
Jan3's user avatar
  • 185
2 votes
0 answers
20 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 ...
Wissenschaft's user avatar
1 vote
1 answer
101 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?
Phil Nguyen's user avatar
  • 1,140
1 vote
1 answer
132 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 ...
ThomasGuest's user avatar
1 vote
2 answers
107 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 ...
Oalvinegro's user avatar
1 vote
1 answer
25 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 ...
Phil Nguyen's user avatar
  • 1,140
1 vote
1 answer
352 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 ...
Melograno's user avatar
1 vote
1 answer
18 views

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-...
Hosea's user avatar
  • 115
1 vote
1 answer
131 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 ...
Jhonny's user avatar
  • 317
0 votes
1 answer
43 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 ...
user32506's user avatar
0 votes
1 answer
45 views

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: $Y_{it}$ = $\alpha$ + $\beta$ $(pt)_{kt}$...
Phil Nguyen's user avatar
  • 1,140
0 votes
0 answers
23 views

Interpretation of a proportion as a treatment variable in a difference-in-differences specification

Say we observe outcomes for all U.S. states over many years. Some law/policy is introduced and affects some states but not others. The policy may start anytime throughout the year for some states; for ...
Thomas Bilach's user avatar