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Estimating a Continuous Treatment Model with Spillovers: A Control Function Approach

Tadao Hoshino

arXiv 30 Dec 2021 · Econometrics · publishedJournal of Business and Economic Statistics (2023) · 4 citations (OpenAlex)

arXiv:2112.15114 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We study a continuous treatment effect model in the presence of treatment spillovers through social networks. We assume that one's outcome is affected not only by his/her own treatment but also by a (weighted) average of his/her neighbors' treatments, both of which are treated as endogenous variables. Using a control function approach with appropriate instrumental variables, we show that the conditional mean potential outcome can be nonparametrically identified. We also consider a more empirically tractable semiparametric model and develop a three-step estimation procedure for this model. As an empirical illustration, we investigate the causal effect of the regional unemployment rate on the crime rate.

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52
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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
1Imbens, G.W. and Newey, W.K (2009) Identification and estimation of triangular simultaneous equations models without additivity0.81142100%
2Jenish, N. and Prucha, I.R (2009) Central limit theorems and uniform laws of large numbers for arrays of random fields0.7375340%
3Blundell, R. and Powell, J.L (2003) Endogeneity in nonparametric and semiparametric regression models0.73732100%
4Chernozhukov, V., Fernández-Val, I., Newey, W., Stouli, S., and Vell… (2020) Semiparametric estimation of structural functions in nonseparable triangular models0.64422100%
5Florens, J.P., Heckman, J.J., Meghir, C., and Vytlacil, E (2008) Identification of treatment effects using control functions in models with continuous, endogenous treatment and heterogeneous ef…0.64422100%
6Hoshino, T. and Yanagi, T (2021) a self0.64422100%
7Hu, L., Huang, T., and You, J (2019) Estimation and identification of a varying-coefficient additive model for locally stationary processes0.64422100%
8Huang, J.Z (2003) Local asymptotics for polynomial spline regression0.64422100%
9Newey, W. and Stouli, S (2021) Control variables, discrete instruments, and identification of structural functions0.64422100%
10Zhang, X. and Wang, J.L (2015) Varying-coefficient additive models for functional data0.64422100%

Showing the top 10 of 52 scored citations.