The treatment effect, the cross difference, and the interaction term in nonlinear "difference-in-differences" models

Research output: Contribution to journalArticleResearchpeer review

Authors

  • Patrick A. Puhani

Research Organisations

External Research Organisations

  • University of St. Gallen (HSG)
  • Institute of Labor Economics (IZA)
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Details

Original languageEnglish
Pages (from-to)85-87
Number of pages3
JournalEconomics letters
Volume115
Issue number1
Early online date8 Dec 2011
Publication statusPublished - Apr 2012

Abstract

In any nonlinear "difference-in-differences" model with strictly monotonic transformation function, the treatment effect is the cross difference of the observed outcome minus the cross difference of the potential non-treatment outcome, which equals the incremental effect of the interaction term coefficient.

Keywords

    Identification, Logit, Potential outcomes, Probit, Tobit

ASJC Scopus subject areas

Cite this

The treatment effect, the cross difference, and the interaction term in nonlinear "difference-in-differences" models. / Puhani, Patrick A.
In: Economics letters, Vol. 115, No. 1, 04.2012, p. 85-87.

Research output: Contribution to journalArticleResearchpeer review

Puhani PA. The treatment effect, the cross difference, and the interaction term in nonlinear "difference-in-differences" models. Economics letters. 2012 Apr;115(1):85-87. Epub 2011 Dec 8. doi: 10.1016/j.econlet.2011.11.025
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