Dynamically assigned treatments: duration models, binary treatment models, and panel data models

Författare: Jaap H. Abbring, Och Gerard J. van den Berg, Och

Sammanfattning av

Working paper


Often, the moment of a treatment and the moment at which the outcome of interest occurs are realizations of stochastic processes with dependent unobserved determinants. Notably, both treatment and outcome are characterized by the moment they occur. We compare di fferent methods of inference of the treatment eff ect, and we argue that the timing of the treatment relative to the outcome conveys useful information on the treatment e ffect, which is discarded in binary treatment frameworks.

Keywords: program evaluation, treatment e ects, bivariate duration analysis, selection bias, hazard rate, unobserved heterogeneity, fixed eff ects, random effects.
JEL codes:
C14, C31, C41.