Partial Distributional Policy Effects

By Christoph Rothe. Social Science Research Network, 2011

89 citations recorded by the source corpus.

In this paper, we propose a method to evaluate the effect of a counterfactual change in the unconditional distribution of a single covariate on the unconditional distribution of an outcome variable of interest. Both fixed and infinitesimal changes are considered. We show that such effects are point identified under general conditions if the covariate affected by the counterfactual change is continuously distributed, but are typically only partially identified if its distribution is discrete. For the latter case, we derive informative bounds making use of the available information. We also discuss estimation and inference.

Subfields: Economics and Econometrics, Management Science and Operations Research, Statistics and Probability

View Paper: https://www.semanticscholar.org/paper/a88bba8c9b44c5c5c733056fdec9da6167ef7807

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In Economics and Econometrics

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Citations in the corpus

Copulas in Econometrics (2014, unknown): “Rothe (2012) uses copulas to study distributional policy effects.”
Regression discontinuity design with many thresholds (2017, unknown): “To investigate the direct effects of D, Rothe (2012) proposes methods for inference on partial policy effects that preserve the distribution of ranks of (D,X) unchanged, thus controlling for composition effects.”
Quantile treatment effects in difference in differences models under dependence restrictions and with only two time periods (2017, background): “Also, a counterfactual distribution of an outcome under a counterfactual covariates distribution has been studied by Firpo et al. (2009), Rothe (2012) and Chernozhukov et al. (2013a) among others.”