Dear KAEA Members,
We hope your semester is off to a great start! We are happy to hold our first seminar this semester next week. The information on the seminar is as follows:
Date/Time: September 8th at 8pm ET (September 9th at 9am KST)
Presenter: Pedro Sant’Anna (Microsoft)
Title: Difference-in-Differences with a Continuous Treatment
Abstract: This paper analyzes difference-in-differences setups with a continuous treatment. We show that treatment effect on the treated-type parameters can be identified under a generalized parallel trends assumption that is similar to the binary treatment setup. However, interpreting differences in these parameters across different values of the treatment can be particularly challenging due to treatment effect heterogeneity. We discuss alternative, typically stronger, assumptions that alleviate these challenges. We also provide a variety of treatment effect decomposition results, highlighting that parameters associated with popular two-way fixed-effect specifications can be hard to interpret, even when there are only two time periods. We introduce alternative estimation strategies that do not suffer from these drawbacks. Our results also cover cases where (i) there is no available untreated comparison group and (ii) there are multiple periods and variation in treatment timing, which are both common in empirical work.
Link to the paper: https://arxiv.org/abs/2107.02637
Zoom link to the seminar: https://sfu.zoom.us/j/61963708939?pwd=bGlwUHZmWFpKYkIrY01BODJuWDJZQT09
We look forward to seeing you then!
KAEA-VSS Empirical Micro and Microeconometrics organizers
Dongwoo Kim, Sokbae Lee, Boyoung Seo, Suyong Song