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Inference for multi-valued heterogeneous treatment effects when the number of treated units is small

Marina Dias, Demian Pouzo

arXiv 23 May 2021 · Econometrics

arXiv:2105.10965 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a method for conducting asymptotically valid inference for treatment effects in a multi-valued treatment framework where the number of units in the treatment arms can be small and do not grow with the sample size. We accomplish this by casting the model as a semi-/non-parametric conditional quantile model and using known finite sample results about the law of the indicator function that defines the conditional quantile. Our framework allows for structural functions that are non-additively separable, with flexible functional forms and heteroskedasticy in the residuals, and it also encompasses commonly used designs like difference in difference. We study the finite sample behavior of our test in a Monte Carlo study and we also apply our results to assessing the effect of weather events on GDP growth.

Citation extraction

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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
1X. Chen, O. Linton, and I. Van Keilegom (2003) Estimation of semiparametric models when the criterion function is not smooth0.9098375%
2M. Dell, B. F. Jones, and B. A. Olken (2012) Temperature shocks and economic growth: Evidence from the last half century0.87482100%
3X. Chen and D. Pouzo (2012) Estimation of nonparametric conditional moment models with possibly nonsmooth generalized residuals0.87462100%
4B. Ferman and C. Pinto (2019) Inference in differences-in-differences with few treated groups and heteroskedasticity0.87452100%
5V. Chernozhukov, C. Hansen, and M. Jansson (2009) Finite sample inference for quantile regression models0.81142100%
6V. Chernozhukov and C. Hansen (2005) An iv model of quantile treatment effects0.7374275%
7B. Callaway and P. H. Sant'Anna (2018) Difference-in-differences with multiple time periods and an application on the minimum wage and employment0.73732100%
8S. Han (2018) Identification in nonparametric models for dynamic treatment effects0.73732100%
9C. de Chaisemartin and X. D'Haultfœuille (2020) Two-way fixed effects estimators with heterogeneous treatment effects0.64422100%
10L. Sun and S. Abraham (2020) Estimating dynamic treatment effects in event studies with heterogeneous treatment effects0.64422100%

Showing the top 10 of 34 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
1Stable Probability Weighting Large-Sample and Finite-Sample Estimation and Inference Methods for Heterogeneous Causal Effects of Multivalued Treatments Under Limited Overlap0.69351