Economics Stack Exchange
Economics Stack Exchange

Questions tagged [causal-inference]

16 questions
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3 answers

Identifying assumption meaning

I am hoping to get a good explanation regarding what is meant by an identifying assumption. In many articles, under empirical strategy, authors state that: we exploit firm level variation to identify the effect we exploit industry level variation…
user508281
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Seemingly Unrelated Regression Estimation - Equivalent to OLS Standard errors?

In a SURE framework, if all X are the same in all regressions I was under the impression that there is no efficiency gain. Recently an assistant professor told me that the beta coefficients would be the same as OLS, but the standard errors would…
Michael Gmeiner
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1 answer

Bootstrap always valid under asymptotic Normality?

If an estimator is known to have an asymptotically normal distribution, is that sufficient for the bootstrap to be valid? It seems that is must be, but in 20 minutes of Googling I have come up empty on a proof.
Michael Gmeiner
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4
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1 answer

Skepticism about the claims of instrument variable validity/exclusion through a statistical test—the Arellano-Bond Test

I am an applied researcher and occasionally come across papers that have panel data and that use dynamic models with both a fixed-effects term and lagged DV (or multiple autoregressive terms): $y_{it} = \beta_0 + B_1X_{it}+\alpha y_{i(t-1)}+\delta…
Student
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1 answer

How does counterfactual for continuous variables work?

It is clear to me what counterfactual is and how it works for binary variables. However, I'm confused about how it works for continuous variables. For example, we are trying to estimate the effect of car loan interest rate on car purchases. How…
cc88
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1 answer

Subsampling vs. m out of n bootstrap

My understanding is the distinction between subsampling and the m out of n bootstrap is that subsampling draws without replacement but the m out of n bootstrap does not. If we are not in a situation with m = n, is there a reason to prefer the m out…
Michael Gmeiner
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Difference between a structural and a causal model in economics

I was reading this sentence "As we discuss later in Section 8, IO economists have developed a variety of structural models of auction bid data. These models have been used to derive causal models of the equilibrium relations between winning bids and…
ColorStatistics
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Trade-off between "extent of controls" and "quasi-experimental"

I apologize in advance for a long and possibly misworded question. I am trying to get to something but I am not exactly sure how to explain it. Hopefully, you can bear with me and provide me with some guidance. I am interested in the trade-off…
FZS
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Fuzzy RDD when individuals can affect the probability of treatment

I want to evaluate the effect of getting into a program on earnings. In my case individuals that get a score above $c$ can decide weather to get into the program or not. On the other hand those that get below $c$ cannot join the program. How can I…
Giorgetto
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Can Difference-in-Difference be used when the treatment effects get smaller with time since treatment?

Recently, there is an emerging line of the study said that the traditional two-way fixed effect(TWFE) is failed in a lot of case because of the heterogeneous effects of laws over time, follow some paper Goodman-Bacon (2019), Chaisemartin,…
Louise
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Reverse DiD: or using always treated as control

I would be interested also in the generalised case, but let's start with 2x2 to keep it simple. Say you have two groups $i \in \{1,2\}$ and two time periods $t$ and $t-1$, as the classical DiD case. One group is untreated in $t-1$, i.e. $D_{t-1}=0$,…
Papayapap
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What are the meanings of "difference-in-differences" and "causal estimand"?

In one discussion, I saw the answer containing two words that I think can be used interchangeably, but I am not sure if it's the case. I simply state in other posts that the "generalized" **difference-in-differences estimator may accommodate…
Louise
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RDD with time-varying cut-off

I have a sharp assignment rule based on age cut-off. During my observation period, the cut-off was reduced expanding access. I can do a normal RDD based on the current cut-off, but is there a better way to exploit the extra variation? Are there ways…
Papayapap
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Advice on research methodology

I had wanted to ask this community for some advice on some potential methodologies I am developing. Context: I want to evaluate the effectiveness of a component of this scholarship program, which involves visiting schools and talk about…
Tara
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Behavioral responses of tax policy on labour supply ( first time doing Difference in Differences)

I am trying to estimate the causal effects of the The Working Income Tax Benefit (WITB) on the labour supply of married women in Canada. The WITB is essentially equivalent to the EITC. I am looking at two years in the Survey of Labour Income and…
Friendlyperson2020
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