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Analyzing the effect of dynamically assigned treatments using duration models, binary treatment models, and panel data models

Author

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  • Jaap H. Abbring
  • Gerard J. van den Berg

Abstract

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. In this paper, we compare different methods of inference of the treatment effect. We argue that the timing of the treatment relative to the outcome conveys useful information on the treatment effect, which is discarded in binary treatment frameworks. Copyright Springer-Verlag 2004

Suggested Citation

  • Jaap H. Abbring & Gerard J. van den Berg, 2004. "Analyzing the effect of dynamically assigned treatments using duration models, binary treatment models, and panel data models," Empirical Economics, Springer, vol. 29(1), pages 5-20, January.
    • Handle: RePEc:spr:empeco:v:29:y:2004:i:1:p:5-20
    DOI: 10.1007/s00181-003-0188-y
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    Keywords

    Program evaluation; treatment effects; timing-of-events method; bivariate duration analysis; selection bias; C14; C31; C41;
    All these keywords.

    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
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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