Identification of Causal Intensive Margin Effects by Difference-in-Difference Methods
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Date
2018-11
Publication Type
Working Paper
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yes
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Abstract
This paper discusses identification of causal intensive margin effects. The causal intensive margin effect is defined as the treatment effect on the outcome of individuals with a positive outcome irrespective of whether they are treated or not (always-takers or participants). A potential selection problem arises when conditioning on positive outcomes, even if treatment is randomly assigned. We propose to use difference-in-difference methods - conditional on positive outcomes - to esti-
mate causal intensive margin effects. We derive sufficient conditions under which the difference-in-difference methods identify the causal intensive margin effect in a setting with random treatment.
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published
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Journal / series
Economics Working Paper Series
Volume
18/302
Pages / Article No.
Publisher
CER-ETH – Center of Economic Research at ETH Zurich
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Subject
Intensive margin effect; Difference-in-diference; Corner solution models; Potential outcomes; Policy evaluation
Organisational unit
03877 - Bommier, Antoine / Bommier, Antoine