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Dynamic Treatment Assignment: The Consequences for Evaluations Using Observational Data
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2008 (English)In: Journal of business & economic statistics, ISSN 0735-0015, E-ISSN 1537-2707, Vol. 26, no 4, 435-445 p.Article in journal (Refereed) Published
Abstract [en]

We discuss estimation of treatment effects when the timing of treatment is the outcome of a stochastic process. We show that the duration framework in discrete time provides a fertile ground for effect evaluations. We suggest easy-to-use nonparametric survival function matching estimators that can be used to estimate the time profile of the treatment.We study the small-sample properties of the proposed estimators and apply one of them to evaluate the effects of an employment subsidy program. We find that the longerrun program effects are positive. The estimated time profile suggests locking-in effects while participating in the program and a significant upward jump in the employment hazard on program completion.

Place, publisher, year, edition, pages
2008. Vol. 26, no 4, 435-445 p.
Keyword [en]
Dynamic treatment assignment, Method of matching, Program evaluation, Treatment effects
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-108467DOI: 10.1198/073500108000000033ISI: 000268506300004OAI: oai:DiVA.org:uu-108467DiVA: diva2:235974
Available from: 2009-09-18 Created: 2009-09-18 Last updated: 2010-12-28Bibliographically approved

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