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Estimating local average treatment effects in aggregate data

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ABSTRACT In some contexts, the effect of a treatment can be estimated with easily accessible aggregate rather than individual data, using difference-in-difference estimation. However, under imperfect assignment within groups, this… Click to show full abstract

ABSTRACT In some contexts, the effect of a treatment can be estimated with easily accessible aggregate rather than individual data, using difference-in-difference estimation. However, under imperfect assignment within groups, this produces intent-to-treat estimates, which may not be the treatment effect of interest. This article provides a method for estimating local average treatment effects using aggregate data. I also suggest a data source that allows the method to be applied when treatment rates are not recorded.

Keywords: local average; average treatment; estimating local; treatment; aggregate data; treatment effects

Journal Title: Applied Economics Letters
Year Published: 2017

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