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Partial Distributional Policy Effects

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  • Christoph Rothe

Abstract

In this paper, we propose a method to evaluate the effect of a counterfactual change in the unconditional distribution of a single covariate on the unconditional distribution of an outcome variable of interest. Both fixed and infinitesimal changes are considered. We show that such effects are point identified under general conditions if the covariate affected by the counterfactual change is continuously distributed, but are typically only partially identified if its distribution is discrete. For the latter case, we derive informative bounds making use of the available information. We also discuss estimation and inference.
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Suggested Citation

  • Christoph Rothe, 2012. "Partial Distributional Policy Effects," Econometrica, Econometric Society, vol. 80(5), pages 2269-2301, September.
    • Handle: RePEc:ecm:emetrp:v:80:y:2012:i:5:p:2269-2301
    DOI: ECTA9671
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    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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