Subscribe to the gold package and get unlimited access to Shamra Academy
Register a new userSimple Diagnostics for Two-Way Fixed Effects
403
0
0.0
(
0
)
Authors
Pamela Jakiela
Ask ChatGPT about the research
No Arabic abstract
Difference-in-differences estimation is a widely used method of program evaluation. When treatment is implemented in different places at different times, researchers often use two-way fixed effects to control for location-specific and period-specific shocks. Such estimates can be severely biased when treatment effects change over time within treated units. I review the sources of this bias and propose several simple diagnostics for assessing its likely severity. I illustrate these tools through a case study of free primary education in Sub-Saharan Africa.
rate research
Read More
Standard macroeconomic models assume that households are rational in the sense that they are perfect utility maximizers, and explain economic dynamics in terms of shocks that drive the economy away from the stead-state. Here we build on a standard macroeconomic model in which a single rational representative household makes a savings decision of how much to consume or invest. In our model households are myopic boundedly rational heterogeneous agents embedded in a social network. From time to time each household updates its savings rate by copying the savings rate of its neighbor with the highest consumption. If the updating time is short, the economy is stuck in a poverty trap, but for longer updating times economic output approaches its optimal value, and we observe a critical transition to an economy with irregular endogenous oscillations in economic output, resembling a business cycle. In this regime households divide into two groups: Poor households with low savings rates and rich households with high savings rates. Thus inequality and economic dynamics both occur spontaneously as a consequence of imperfect household decision making. Our work here supports an alternative program of research that substitutes utility maximization for behaviorally grounded decision making.
This article uses data of subjective Life Satisfaction aggregated to the community level in Canada and examines the spatial interdependencies and spatial spillovers of community happiness. A theoretical model of utility is presented. Using spatial econometric techniques, we find that the utility of community, proxied by subjective measures of life satisfaction, is affected both by the utility of neighbouring communities as well as by the latters average household income and unemployment rate. Shared cultural traits and institutions may justify such spillovers. The results are robust to the different binary contiguity spatial weights matrices used and to the various econometric models. Clusters of both high-high and low-low in Life Satisfaction communities are also found based on the Morans I test
Higher duration of programs that involve legal protection may entail gradual positive changes in social norms that can be leveraged by potential beneficiaries in their favor. This paper examines the heterogeneous impact of the duration of exposure to gender-neutral reforms in the inheritance law in India on two latent domains of women empowerment: intrinsic, which pertains to expansion of agency and instrumental which relates to ability to make decisions. The time lag between the year of the amendment in the respective states and the year of marriage generate exogenous variation in reform exposure across women. The findings indicate a significant non-linear increase in the instrumental as well as intrinsic empowerment. Importantly, improvements in education along with increase in the age of marriage and changes in family structure are found to be the potential channels that signal gradual relaxation of social norms and explain the higher returns to exposure on empowerment.
The study examines the effect of cooking fuel choice on educational outcomes of adolescent children in rural India. Using multiple large-scale nationally representative datasets, we observe household solid fuel usage to adversely impact school attendance, years of schooling and age-appropriate grade progression among children. This inference is robust to alternative ways of measuring educational outcomes, other datasets, specifications and estimation techniques. Importantly, the effect is found to be more pronounced for females in comparison to the males highlighting the gendered nature of the impact. On exploring possible pathways, we find that the direct time substitution on account of solid fuel collection and preparation can explain the detrimental educational outcomes that include learning outcomes as well, even though we are unable to reject the health channel. In the light of the micro and macro level vulnerabilities posed by the COVID-19 outbreak, the paper recommends interventions that have the potential to fasten the household energy transition towards clean fuel in the post-covid world.
One important dimension of Conditional Cash Transfer Programs apart from conditionality is the provision of continuous frequency of payouts. On the contrary, the Apni Beti Apna Dhan program, implemented in the state of Haryana in India from 1994 to 1998 offers a promised amount to female beneficiaries redeemable only after attaining 18 years of age if she remains unmarried. This paper assesses the impact of this long-term financial incentivization on outcomes, not directly associated with the conditionality. Using multiple datasets in a triple difference framework, the findings reveal a significant positive impact on years of education though it does not translate into gains in labor participation. While gauging the potential channels, we did not observe higher educational effects beyond secondary education. Additionally, impact on time allocation for leisure, socialization or self-care, age of marriage beyond 18 years, age at first birth, and post-marital empowerment indicators are found to be limited. These evidence indicate failure of the program in altering the prevailing gender norms despite improvements in educational outcomes. The paper recommends a set of complementary potential policy instruments that include altering gender norms through behavioral interventions skill development and incentives to encourage female work participation.
Log in to be able to interact and post comments
comments
Fetching comments
Sign in to be able to follow your search criteria
