Work

Bounds on the fixed effects estimand in the presence of heterogeneous assignment propensities

Year: 2025

Type: article

Abstract: Fixed effects estimation, with linear controls for stratum membership, is often used to estimate treatment effects when assignment propensities differ across strata. In the presence of heterogeneity in treatment effects across strata, this estimator does not target the average treatment effect, however. Indeed, the implied estimand can range anywhere from the lowest to the highest stratum-level average effect. To facilitate the interpretation of results using this approach, I establish that if stratum-level average effects are monotonic in the shares assigned to treatment, then the fixed effects estimand lies between the average treatment effect for the treated and the average treatment effect for the controls.

Source: Journal of Causal Inference

DOI: 10.1515/jci-2024-0040

Author: Macartan Humphreys

Institutions: Trinity College Dublin, WZB Berlin Social Science Center, Humboldt-Universität zu Berlin

Language: English

Topic: Advanced Causal Inference Techniques

Subfield: Statistics and Probability

Field: Mathematics

Domain: Physical Sciences

Open Access status: gold

Estimated APC paid: $1,187

OpenAlex ID: W4413080817

FWCI:

Cites: 19

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Related to: 10