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Difference-in-Differences Estimators with Continuous Treatments and no Stayers

Clément de Chaisemartin, Xavier D'Haultfœuille, Gonzalo Vazquez-Bare

arXiv 8 Feb 2024 · Econometrics · publishedAEA Papers and Proceedings (2024) · 34 citations (OpenAlex)

arXiv:2402.05432 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Many treatments or policy interventions are continuous in nature. Examples include prices, taxes or temperatures. Empirical researchers have usually relied on two-way fixed effect regressions to estimate treatment effects in such cases. However, such estimators are not robust to heterogeneous treatment effects in general; they also rely on the linearity of treatment effects. We propose estimators for continuous treatments that do not impose those restrictions, and that can be used when there are no stayers: the treatment of all units changes from one period to the next. We start by extending the nonparametric results of de Chaisemartin et al. (2023) to cases without stayers. We also present a parametric estimator, and use it to revisit Desch\^enes and Greenstone (2012).

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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
1Clément de Chaisemartin, Xavier D'Haultfuille, Félix Pasquier \ Gonz… (2023) Difference-in-differences estimators for treatments continuously distributed at every period0.69351100%
2Olivier Deschênes \ Michael Greenstone (2012) The economic impacts of climate change: evidence from agricultural output and random fluctuations in weather: reply0.58531100%
3Herman J Bierens (1982) Consistent model specification tests0.40511100%
4Clément De Chaisemartin \ Xavier D’Haultfuille (2020) Two-way fixed effects estimators with heterogeneous treatment effects0.40511100%
5Yongmiao Hong \ Halbert White (1995) Consistent specification testing via nonparametric series regression0.40511100%
6Efang Kong, Oliver Linton \ Yingcun Xia (2010) Uniform Bahadur representation for local polynomial estimates of M-regression and its application to the additive model0.40511100%
7Oliver Linton \ Jens Perch Nielsen (1995) A kernel method of estimating structured nonparametric regression based on marginal integration0.40511100%
8Charles J Stone (1985) Additive regression and other nonparametric models0.40511100%

Showing the top 8 of 8 scored citations.