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Treatment Effect Models with Strategic Interaction in Treatment Decisions

Tadao Hoshino, Takahide Yanagi

arXiv 19 Oct 2018 · Econometrics · publishedJournal of Econometrics (2023) · 3 citations (OpenAlex)

arXiv:1810.08350 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This study considers treatment effect models in which others' treatment decisions can affect both one's own treatment and outcome. Focusing on the case of two-player interactions, we formulate treatment decision behavior as a complete information game with multiple equilibria. Using a latent index framework and assuming a stochastic equilibrium selection, we prove that the marginal treatment effect from one's own treatment and that from the partner are identifiable on the conditional supports of certain threshold variables determined through the game model. Based on our constructive identification results, we propose a two-step semiparametric procedure for estimating the marginal treatment effects using series approximation. We show that the proposed estimator is uniformly consistent and asymptotically normally distributed. As an empirical illustration, we investigate the impacts of risky behaviors on adolescents' academic performance.

Citation extraction

55
references
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in-text mentions
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distinct cited
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main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Lee, S. and Salanié, B (2018) Identifying effects of multivalued treatments1.00073100%
2Card, D. and Giuliano, L (2013) Peer effects and multiple equilibria in the risky behavior of friends1.00065100%
3Heckman, J.J. and Vytlacil, E.J (1999) Local instrumental variables and latent variable models for identifying and bounding treatment effects1.00063100%
4Han, S. and Vytlacil, E.J (2017) Identification in a generalization of bivariate probit models with dummy endogenous regressors0.92810380%
5Soetevent, A.R. and Kooreman, P (2007) A discrete-choice model with social interactions: with an application to high school teen behavior0.92844100%
6Heckman, J.J. and Vytlacil, E.J (2005) Structural equations, treatment effects, and econometric policy evaluation0.9098475%
7Tamer, E (2003) Incomplete simultaneous discrete response model with multiple equilibria0.84333100%
8Bjorn, P.A. and Vuong, Q.H (1984) Simultaneous equations models for dummy endogenous variables: a game theoretic formulation with an application to labor force pa…0.81142100%
9Balat, J. and Han, S (2022) Multiple treatments with strategic substitutes0.73732100%
10Heckman, J.J. and Pinto, R (2018) Unordered monotonicity0.73732100%

Showing the top 10 of 64 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Unobserved Heterogeneous Spillover Effects in Instrumental Variable Models0.84344
2Heterogeneous Effects of Endogenous Treatments with Interference and Spillovers in a Large Network0.84333
3Estimating Marginal Treatment Effects under Unobserved Group Heterogeneity0.63083
4A Pairwise Strategic Network Formation Model with Group Heterogeneity: With an Application to International Travel0.40511
5Graph Neural Networks for Causal Inference Under Network Confounding0.40511