[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/p/usg/econwp/201510.html
   My bibliography  Save this paper

Identification based on Difference-in-Differences Approaches with Multiple Treatments

Author

Listed:
  • Fricke, Hans
Abstract
This paper discusses identification based on difference-in-differences (DiD) approaches with multiple treatments. It shows that an appropriate adaptation of the common trend assumption underlying the DiD strategy for the comparison of two treatments restricts the possibility of effect heterogeneity for at least one of the treatments. The required assumption of effect homogeneity is likely to be violated because of non-random assignment to treatment based on both observables and unobservables. However, this paper shows that, under certain conditions, the DiD estimate comparing two treatments identifies a lower bound in absolute values on the average treatment effect on the treated compared to the unobserved non-treatment state, even if effect homogeneity is violated. This is possible if, in expectation, the effects of both treatments compared to no treatment have the same sign, and one treatment has a stronger effect than the other treatment on the respective recipients. Such assumptions are plausible if treatments are ordered or vary in intensity.

Suggested Citation

  • Fricke, Hans, 2015. "Identification based on Difference-in-Differences Approaches with Multiple Treatments," Economics Working Paper Series 1510, University of St. Gallen, School of Economics and Political Science.
  • Handle: RePEc:usg:econwp:2015:10
    as

    Download full text from publisher

    File URL: http://ux-tauri.unisg.ch/RePEc/usg/econwp/EWP-1510.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Douglas Holtz-Eakin & David Joulfaian & Harvey S. Rosen, 1993. "The Carnegie Conjecture: Some Empirical Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 413-435.
    2. Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May.
    3. Lars J. Kirkeboen & Edwin Leuven & Magne Mogstad, 2016. "Editor's Choice Field of Study, Earnings, and Self-Selection," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1057-1111.
    4. Markus Frölich, 2004. "Programme Evaluation with Multiple Treatments," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 181-224, April.
    5. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September.
    6. Vivi Alatas & Lisa A. Cameron, 2008. "The Impact of Minimum Wages on Employment in a Low-Income Country: A Quasi-Natural Experiment in Indonesia," ILR Review, Cornell University, ILR School, vol. 61(2), pages 201-223, January.
    7. Hans Fricke, 2017. "Identification Based on Difference-in-Differences Approaches with Multiple Treatments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(3), pages 426-433, June.
    8. Lechner, Michael, 2011. "The Estimation of Causal Effects by Difference-in-Difference Methods," Foundations and Trends(R) in Econometrics, now publishers, vol. 4(3), pages 165-224, November.
    9. Alberto Abadie, 2005. "Semiparametric Difference-in-Differences Estimators," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(1), pages 1-19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brekke, Kurt R. & Canta, Chiara & Siciliani, Luigi & Straume, Odd Rune, 2021. "Hospital competition in a national health service: Evidence from a patient choice reform," Journal of Health Economics, Elsevier, vol. 79(C).
    2. Beestermöller, Matthias, 2017. "Striking Evidence? Demand Persistence for Inter-City Buses from German Railway Strikes," Discussion Papers in Economics 31768, University of Munich, Department of Economics.
    3. Crook, David R. & Robinson, Brian E. & Li, Ping, 2020. "The Impact of Snowstorms, Droughts and Locust Outbreaks on Livestock Production in Inner Mongolia: Anticipation and Adaptation to Environmental Shocks," Ecological Economics, Elsevier, vol. 177(C).
    4. Hans Fricke, 2017. "Identification Based on Difference-in-Differences Approaches with Multiple Treatments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(3), pages 426-433, June.
    5. Kimin Kim & Myoung-jae Lee, 2019. "Difference in differences in reverse," Empirical Economics, Springer, vol. 57(3), pages 705-725, September.
    6. Hernández Alemán, Anastasia & León, Carmelo J. & Márquez-Ramos, Laura, 2017. "The Effect of the Universal Child Care Cash Benefit on Female Labour Supply in Spain /Efecto de la prestación monetaria universal para el cuidado de hijos en la oferta de trabajo femenina en España," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 35, pages 801-818, Agosto.
    7. Huber, Martin & Tyahlo, Svitlana, 2016. "How war affects political attitudes: evidence from eastern Ukraine," FSES Working Papers 472, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    8. Gurmu, Shiferaw & Sjoquist, David L. & Wheeler, Laura, 2021. "The effectiveness of job creation tax credits," Regional Science and Urban Economics, Elsevier, vol. 90(C).
    9. Mäkelä, Erik, 2017. "The effect of mass influx on labor markets: Portuguese 1974 evidence revisited," European Economic Review, Elsevier, vol. 98(C), pages 240-263.
    10. Brantly Callaway & Andrew Goodman-Bacon & Pedro H. C. Sant'Anna, 2021. "Difference-in-Differences with a Continuous Treatment," Papers 2107.02637, arXiv.org, revised Jan 2024.
    11. Jane & Tan & Yong Tan, 2022. "The Effect of Crypto Rewards in Fundraising: From a Quasi-Experiment to a Dictator Game," Papers 2207.07490, arXiv.org, revised Sep 2024.
    12. Marcus Roller, Daniel Steinberg, 2023. "Differences-in-Differences with multiple Treatments under Control," Diskussionsschriften credresearchpaper41, Universitaet Bern, Departement Volkswirtschaft - CRED.
    13. Doerr Annabelle & Strittmatter Anthony, 2021. "Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection," Journal of Econometric Methods, De Gruyter, vol. 10(1), pages 67-88, January.
    14. Robert Calvert Jump & Adam Scavette, 2024. "Do Research Universities Recession Proof Their Regions? Evidence from State Flagship College Towns," Working Paper 24-05, Federal Reserve Bank of Richmond.
    15. Amanda Kennard, 2021. "My Brother’s Keeper: Other-regarding preferences and concern for global climate change," The Review of International Organizations, Springer, vol. 16(2), pages 345-376, April.
    16. Visa Pitkänen, 2022. "Competition and efficiency in repeated procurements: Lessons from the Finnish rehabilitation markets," Health Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 820-835, May.
    17. Ni Huang & Yili Hong & Gordon Burtch, 2015. "Digital Social Visibility, Anonymity and User Content Generation: Evidence from Natural Experiments," Working Papers 15-04, NET Institute.
    18. Aleksandar Petreski & Dorothea Schäfer & Andreas Stephan, 2022. "Green Bonds’ Reputation Effect and Its Impact on the Financing Costs of the Real Estate Sector," Discussion Papers of DIW Berlin 2019, DIW Berlin, German Institute for Economic Research.
    19. Robert Falconer, 2022. "Canadian Immigration Policy and the Russo-Ukraine War," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 15(23), August.
    20. Roos, Anne-Fleur & O’Donnell, Owen & Schut, Frederik T. & Van Doorslaer, Eddy & Van Gestel, Raf & Varkevisser, Marco, 2020. "Does price deregulation in a competitive hospital market damage quality?," Journal of Health Economics, Elsevier, vol. 72(C).
    21. Petreski, Aleksandar & Schäfer, Dorothea & Stephan, Andreas, 2023. "The reputation effect of green bond issuance and its impact on the cost of capital," Working Paper Series in Economics and Institutions of Innovation 493, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    2. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    3. Mäkelä, Erik, 2017. "The effect of mass influx on labor markets: Portuguese 1974 evidence revisited," European Economic Review, Elsevier, vol. 98(C), pages 240-263.
    4. Yue-Jun Zhang & Jing-Yue Liu, 2019. "Does carbon emissions trading affect the financial performance of high energy-consuming firms in China?," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(1), pages 91-111, January.
    5. Christian Volpe Martincus & Jerónimo Carballo, 2012. "Export promotion activities in developing countries: What kind of trade do they promote?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 539-578, June.
    6. Christian Volpe Martincus, 2010. "Odyssey in International Markets: An Assessment of the Effectiveness of Export Promotion in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 16458, February.
    7. Huber, Martin & Tyahlo, Svitlana, 2016. "How war affects political attitudes: evidence from eastern Ukraine," FSES Working Papers 472, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    8. Amanda Kennard, 2021. "My Brother’s Keeper: Other-regarding preferences and concern for global climate change," The Review of International Organizations, Springer, vol. 16(2), pages 345-376, April.
    9. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Export Promotion: Heterogeneous Programs and Heterogeneous Effects," IDB Publications (Working Papers) 3176, Inter-American Development Bank.
    10. Zimmert, Franziska, 2019. "Early child care and maternal employment: empirical evidence from Germany," IAB-Discussion Paper 201902, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Hämäläinen, Kari & Ollikainen, Virve, 2004. "Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment," Research Reports 115, VATT Institute for Economic Research.
    12. Uysal, S. Derya, 2013. "Doubly Robust Estimation of Causal Effects with Multivalued Treatments," Economics Series 297, Institute for Advanced Studies.
    13. Bin Tang & Yue Wang & Yujuan Gao & Shijin Wu & Haoyang Li & Yang Chen & Yaojiang Shi, 2020. "The Effect of Boarding on the Mental Health of Primary School Students in Western Rural China," IJERPH, MDPI, vol. 17(21), pages 1-17, November.
    14. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    15. Carlos A. Flores & Oscar A. Mitnik, 2009. "Evaluating Nonexperimental Estimators for Multiple Treatments: Evidence from Experimental Data," Working Papers 2010-10, University of Miami, Department of Economics.
    16. Felicitas Schikora, 2019. "The Effect of Initial Placement Restrictions on Refugees' Language Acquisition in Germany," SOEPpapers on Multidisciplinary Panel Data Research 1035, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Ting Ye & Ashkan Ertefaie & James Flory & Sean Hennessy & Dylan S. Small, 2023. "Instrumented difference‐in‐differences," Biometrics, The International Biometric Society, vol. 79(2), pages 569-581, June.
    18. Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
    19. Nicholas Illenberger & Dylan S. Small & Pamela A. Shaw, 2019. "Regression to the Mean's Impact on the Synthetic Control Method: Bias and Sensitivity Analysis," Papers 1909.04706, arXiv.org.
    20. Massimiliano Mazzanti & Antonio Musolesi, 2020. "Modeling Green Knowledge Production and Environmental Policies with Semiparametric Panel Data Regression models," SEEDS Working Papers 1420, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Sep 2020.

    More about this item

    Keywords

    Policy evaluation; partial identification; heterogeneous treatment effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usg:econwp:2015:10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/vwasgch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.