IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/4e8h2.html
   My bibliography  Save this paper

Non-Linear Treatment Effects, Distributions and Interactions

Author

Listed:
  • Serrano-Serrat, Josep

Abstract

This paper examines critical aspects of analyzing interactions with continuous treatment variables. A theoretical estimand is defined, the Average Interactive Effects, which is the mean of the difference in the slopes of the treatment variable at different levels of the moderator. Crucially, this theoretical estimand is distinct from the difference in Conditional Average Marginal Effects (CAME) at different levels of the moderator. The paper proposes a flexible parametric model that can be used to estimate three important pieces of information: i) predicted values at different levels of the moderator; ii) the difference in the slopes of the relationship between the treatment and the dependent variable at different values of the moderator; and iii) the mean of these slope differences. Simulations show that this approach is better than models that only estimatethe differences in the CAMEs. However, since the unbiasedness of the proposed method depends on the correct specification of the functional form, it is proposed to complement the parametric model with results from Generalized Additive Models. Finally, the effectiveness of the proposed approach is illustrated by two examples.

Suggested Citation

  • Serrano-Serrat, Josep, 2024. "Non-Linear Treatment Effects, Distributions and Interactions," SocArXiv 4e8h2, Center for Open Science.
    • Handle: RePEc:osf:socarx:4e8h2
    DOI: 10.31219/osf.io/4e8h2
    as

    Download full text from publisher

    File URL: https://osf.io/download/65ef3f93e5e51c0cd1bc536e/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/4e8h2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Falcó-Gimeno, Albert & Muñoz, Jordi & Pannico, Roberto, 2023. "Double-Edged Bullets: The Conditional Effect of Terrorism on Vote for the Incumbent," British Journal of Political Science, Cambridge University Press, vol. 53(1), pages 183-203, January.
    2. Brambor, Thomas & Clark, William Roberts & Golder, Matt, 2006. "Understanding Interaction Models: Improving Empirical Analyses," Political Analysis, Cambridge University Press, vol. 14(1), pages 63-82, January.
    3. Hainmueller, Jens & Mummolo, Jonathan & Xu, Yiqing, 2019. "How Much Should We Trust Estimates from Multiplicative Interaction Models? Simple Tools to Improve Empirical Practice," Political Analysis, Cambridge University Press, vol. 27(2), pages 163-192, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tobias Arnold & Sean Mueller & Adrian Vatter, 2021. "Shock or Design: What Drives Fiscal De/Centralization? A Comparative Analysis of Twenty-Nine OECD Countries, 1995–2017," Publius: The Journal of Federalism, CSF Associates Inc., vol. 51(1), pages 1-26.
    2. Simplice A. Asongu & Joseph Nnanna & Vanessa S. Tchamyou, 2020. "Finance, Institutions and Private Investment in Africa," Working Papers of the African Governance and Development Institute. 20/080, African Governance and Development Institute..
    3. Barone, Guglielmo & Kreuter, Helena, 2021. "Low-wage import competition and populist backlash: The case of Italy," European Journal of Political Economy, Elsevier, vol. 67(C).
    4. Stuart J Turnbull-Dugarte, 2020. "Why vote when you cannot choose? EU intervention and political participation in times of constraint," European Union Politics, , vol. 21(3), pages 406-428, September.
    5. Lauren L. Ferry & Emilie M. Hafner-Burton & Christina J. Schneider, 2020. "Catch me if you care: International development organizations and national corruption," The Review of International Organizations, Springer, vol. 15(4), pages 767-792, October.
    6. Alessandro Bellocchi & Giovanni Marin & Giuseppe Travaglini, 2021. "The Great Fall of Labor Share:Micro Determinants for EU Countries Over 2011-2019," Working Papers 2102, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2021.
    7. Wenjie Liao & Liying Luo, 2021. "Gender, Education, and Attitudes toward Women’s Leadership in Three East Asian Countries: An Intersectional and Multilevel Approach," Societies, MDPI, vol. 11(3), pages 1-19, August.
    8. Michael Effah Asamoah & Imhotep Paul Alagidede, 2023. "Foreign direct investment, real sector growth and financial development," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 626-643, January.
    9. Hansen, Daniel, 2020. "The effectiveness of fiscal institutions: International financial flogging or domestic constraint?," European Journal of Political Economy, Elsevier, vol. 63(C).
    10. Elena Kantorowicz‐Reznichenko & Jarosław Kantorowicz & Keren Weinshall, 2022. "Ideological bias in constitutional judgments: Experimental analysis and potential solutions," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 19(3), pages 716-757, September.
    11. Andreas Bergh & Irina Mirkina & Therese Nilsson, 2020. "Can social spending cushion the inequality effect of globalization?," Economics and Politics, Wiley Blackwell, vol. 32(1), pages 104-142, March.
    12. Lee, Wang-Sheng & McKinnish, Terra, 2019. "Locus of control and marital satisfaction: Couple perspectives using Australian data," Journal of Economic Psychology, Elsevier, vol. 74(C).
    13. Reinsberg, Bernhard & Kern, Andreas & Rau-Göhring, Matthias, 2021. "The political economy of IMF conditionality and central bank independence," European Journal of Political Economy, Elsevier, vol. 68(C).
    14. Tran, Viet T. & Walle, Yabibal M. & Herwartz, Helmut, 2020. "The impact of local financial development on firm growth in Vietnam: Does the level of corruption matter?," European Journal of Political Economy, Elsevier, vol. 62(C).
    15. Benny Geys & Rune J. Sørensen, 2020. "Administrative Delegation of Budgetary Powers and Fiscal Performance," Kyklos, Wiley Blackwell, vol. 73(4), pages 477-499, November.
    16. Israel García & Bernd Hayo, 2023. "Fiscal Reform in Spanish Municipalities: Gender Differences in Budgetary Adjustment," MAGKS Papers on Economics 202306, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    17. Li, Qing & Wu, Yanrui, 2020. "Intangible capital, ICT and sector growth in China," Telecommunications Policy, Elsevier, vol. 44(1).
    18. Limberg, Julian, 2022. "Building a tax state in the 21st century: Fiscal pressure, political regimes, and consumption taxation," World Development, Elsevier, vol. 154(C).
    19. Muller, Christopher & Schrage, Daniel, 2019. "The Political Economy of Incarceration in the Cotton South, 1910-1925," Institute for Research on Labor and Employment, Working Paper Series qt7nb8p8bx, Institute of Industrial Relations, UC Berkeley.
    20. Beiser-McGrath, Janina & Beiser-McGrath, Liam F., 2020. "Problems with products? Control strategies for models with interaction and quadratic effects," LSE Research Online Documents on Economics 117235, London School of Economics and Political Science, LSE Library.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:4e8h2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://arabixiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.