Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2015-07-30
Number: 15-091/VIII
Author-Name: Michael S. Delgado
Author-Workplace-Name: Purdue University, United States
Author-Name: Raymond J.G.M. Florax
Author-Workplace-Name: VU University Amsterdam, the Netherlands, and Purdue University, United States
Title: Difference-in-Differences Techniques for Spatial Data: Local Autocorrelation and Spatial Interaction
Abstract: We consider treatment effect estimation via a difference-in-difference approach for data with local spatial interaction such that the outcome of observed units depends on their own treatment as well as on the treatment status of proximate neighbors. We show that under standard assumptions (common trend and ignorability) a straightforward spatially explicit version of the benchmark difference-in-differences regression is capable of identifying both direct and indirect treatment effects. We demonstrate the finite sample performance of our spatial estimator via Monte Carlo simulations.
Classification-JEL: C21, C53
Keywords: Difference-in-differences, Monte Carlo simulation, program evaluation, spatial autocorrelation, spatial interaction
File-Url: https://papers.tinbergen.nl/15091.pdf
File-Format: application/pdf
File-Size: 295104 bytes
Handle: RePEc:tin:wpaper:20150091