The treatment effect, the cross difference, and the interaction term in nonlinear “difference-in-differences” models |
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| Authors: | Patrick A Puhani |
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| Institution: | Leibniz University of Hannover, SEW, University of St. Gallen; IZA, Bonn, Germany |
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| Abstract: | In any nonlinear “difference-in-differences” model with strictly monotonic transformation function, the treatment effect is the cross difference of the observed outcome minus the cross difference of the potential non-treatment outcome, which equals the incremental effect of the interaction term coefficient. |
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| Keywords: | C21 C25 H0 I0 J0 |
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