Identification of Causal Intensive Margin Effects by Difference-in-Difference Methods

Open access
Date
2018-11Type
- Working Paper
ETH Bibliography
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. Show more
Permanent link
https://doi.org/10.3929/ethz-b-000300865Publication status
publishedJournal / series
Economics Working Paper SeriesVolume
Publisher
Center of Economic Research (CER), ETH ZurichSubject
Intensive margin effect; Difference-in-diference; Corner solution models; Potential outcomes; Policy evaluationOrganisational unit
03877 - Bommier, Antoine / Bommier, Antoine
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ETH Bibliography
yes
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