arXiv 8 May 2021 · Econometrics · 47 citations (OpenAlex)
arXiv:2105.03737 · PDF · DOI · OpenAlex · Extracted main text
Empirical work often uses treatment assigned following geographic boundaries. When the effects of treatment cross over borders, classical difference-in-differences estimation produces biased estimates for the average treatment effect. In this paper, I introduce a potential outcomes framework to model spillover effects and decompose the estimate's bias in two parts: (1) the control group no longer identifies the counterfactual trend because their outcomes are affected by treatment and (2) changes in treated units' outcomes reflect the effect of their own treatment status and the effect from the treatment status of 'close' units. I propose conditions for non-parametric identification that can remove both sources of bias and semi-parametrically estimate the spillover effects themselves including in settings with staggered treatment timing. To highlight the importance of spillover effects, I revisit analyses of three place-based interventions.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Butts (2021) Difference-in-Differences with Geocoded Microdata self | 1.000 | 5 | 3 | 100% |
| 2 | Gardner (2021) Two-Stage Difference-in-Differences | 0.950 | 7 | 3 | 86% |
| 3 | Borusyak, Jaravel, and Spiess (2021) Revisiting Event Study Designs: Robust and Efficient Estimation | 0.928 | 4 | 3 | 100% |
| 4 | Kline and Moretti (2014) Local Economic Development, Agglomeration Economies, and the Big Push: 100 Years of Evidence from the Tennessee Valley Authority | 0.874 | 8 | 2 | 100% |
| 5 | Sävje, Aronow, and Hudgens (2021) Average treatment effects in the presence of unknown interference | 0.811 | 4 | 2 | 100% |
| 6 | Vazquez-Bare (2022) Identification and estimation of spillover effects in randomized experiments | 0.811 | 4 | 2 | 100% |
| 7 | Bailey and Goodman-Bacon (2015) The War on Poverty's Experiment in Public Medicine: Community Health Centers and the Mortality of Older Americans | 0.737 | 5 | 3 | 40% |
| 8 | Neumark and Kolko (2010) Do enterprise zones create jobs? Evidence from California’s enterprise zone program | 0.737 | 3 | 2 | 100% |
| 9 | Busso, Gregory, and Kline (2013) Assessing the Incidence and Efficiency of a Prominent Place Based Policy | 0.644 | 2 | 2 | 100% |
| 10 | Clarke (2017) Estimating Difference-in-Differences in the Presence of Spillovers | 0.644 | 2 | 2 | 100% |
Showing the top 10 of 41 scored citations.
arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.