Effect or Treatment Heterogeneity? Policy Evaluation with Aggregated and Disaggregated Treatments

Phillip Heiler and Michael Knaus

Papers from arXiv.org

Abstract: Binary treatments are often ex-post aggregates of multiple treatments or can be disaggregated into multiple treatment versions. Thus, effects can be heterogeneous due to either effect or treatment heterogeneity. We propose a decomposition method that uncovers masked heterogeneity, avoids spurious discoveries, and evaluates treatment assignment quality. The estimation and inference procedure based on double/debiased machine learning allows for high-dimensional confounding, many treatments and extreme propensity scores. Our applications suggest that heterogeneous effects of smoking on birthweight are partially due to different smoking intensities and that gender gaps in Job Corps effectiveness are largely explained by differential selection into vocational training.

Date: 2021-10, Revised 2023-08
New Economics Papers: this item is included in nep-big and nep-ecm
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Working Paper: Effect or Treatment Heterogeneity? Policy Evaluation with Aggregated and Disaggregated Treatments (2022)
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