EconBase
← All papers

Treatment effects without multicollinearity? Temporal order and the Gram-Schmidt process in causal inference

Robin M. Cross, Steven T. Buccola

arXiv 27 Feb 2024 · Econometrics

arXiv:2402.17103 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper incorporates information about the temporal order of regressors to estimate orthogonal and economically interpretable regression coefficients. We establish new finite sample properties for the Gram-Schmidt orthogonalization process. Coefficients are unbiased and stable with lower standard errors than those from Ordinary Least Squares. We provide conditions under which coefficients represent average total treatment effects on the treated and extend the model to groups of ordered and simultaneous regressors. Finally, we reanalyze two studies that controlled for temporally ordered and collinear characteristics, including race, education, and income. The new approach expands Bohren et al.'s decomposition of systemic discrimination into channel-specific effects and improves significance levels.

Citation extraction

68
references
183
in-text mentions
121
distinct cited
1
self-citations
14,105
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

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
1Soczyński, T (2022) Interpreting OLS Estimands When Treatment Effects Are Heterogeneous: Smaller Groups Get Larger Weights1.000103100%
2Pearl, J (2000) Causality: Models, Reasoning, and Inference1.00053100%
3Wright, S (1934) The Method of Path Coefficients1.00053100%
4Lubotsky, D., and M. Wittenberg (2006) Interpretation of Regressions with Multiple Proxies0.87472100%
5Angrist, J.D., and J.S. Pischke (2009) Mostly Harmless Econometrics: An Empiricist's Companion0.87452100%
6Bohren, J.A., P. Hull, and A. Imas (2023) Systemic Discrimination: Theory and Measurement0.81142100%
7Pearl, J (2001) Direct and Indirect Effects0.81142100%
8Imbens, G.W. and J.D. Agrist (1994) Identification and Estimation of Local Average Treatment Effects0.73732100%
9Wong, Y.K (1935) An Application of Orthogonalization Process to the Theory of Least Squares0.73732100%
10Wold, H.O.A (1963) Forecasting by the chain principal0.69351100%

Showing the top 10 of 121 scored citations.