AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Difference-in-Difference Estimators with Continuous Treatments and No Stayers
AEA Papers and Proceedings
vol. 114,
May 2024
(pp. 610–13)
Abstract
Many treatments, such as prices, taxes, or temperatures, are continuous in nature. Empirical researchers usually rely 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 and rely on the linearity of treatment effects. We develop a difference-in-difference strategy for continuous treatments without imposing such restrictions when there are no stayers: treatment of all units changes between consecutive periods. We extend the nonparametric results of de Chaisemartin et al. (2023) to this setup and present a parametric approach that overcomes some limitations of the nonparametric approach.Citation
de Chaisemartin, Clément, Xavier D'Haultfœuille, and Gonzalo Vazquez-Bare. 2024. "Difference-in-Difference Estimators with Continuous Treatments and No Stayers." AEA Papers and Proceedings, 114: 610–13. DOI: 10.1257/pandp.20241049Additional Materials
JEL Classification
- C13 Estimation: General
- C14 Semiparametric and Nonparametric Methods: General
- C21 Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions