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Expected vs. Unexpected Treatment Effects: A Comment on Borusyak & Hull (2023)

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  • Geert Goeyvaerts
  • Jakob Vanschoonbeek

Abstract

In an influential paper, Borusyak & Hull (2023, BH) introduce a ‘recentering’ method to estimate treatment effects from random shocks when units systematically differ in shock exposure but the shock assignment process is known. This comment clarifies how the interpretation of the estimates based on recentering alters in dynamic settings with forward-looking agents, such as when firms make irreversible location or investment decisions based on anticipated infrastructure improvements.

Suggested Citation

  • Geert Goeyvaerts & Jakob Vanschoonbeek, 2025. "Expected vs. Unexpected Treatment Effects: A Comment on Borusyak & Hull (2023)," Working Papers of VIVES - Research Centre for Regional Economics 778148, KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics.
    • Handle: RePEc:ete:vivwps:778148
    Note: paper number 104
    as

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