A simple approximation to the average effect of the treatment on the treated in panel settings with selective enrolment |
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| Authors: | John Gardner |
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| Institution: | Department of Economics, University of Mississippi, University, MS, USA |
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| Abstract: | This article shows that, in panel settings when the probability of receiving a treatment is low, simple comparisons of outcomes between those who are treated in a given period and those who are untreated in that period, but receive the treatment in some other period, approximately identify the average effect of the treatment on the treated. Monte Carlo simulations reveal that this approximate selection-correction substantially reduces selection bias relative to naive comparisons of outcomes between treated and untreated units. |
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| Keywords: | Causal effect treatment effect selection bias |
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