Difference-in-differences techniques for spatial data: Local autocorrelation and spatial interaction

M.S. Delgado, R.J.G.M. Florax

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

We consider treatment effect estimation via a difference-in-difference approach for spatial data with local spatial interaction such that the potential outcome of observed units depends on their own treatment as well as on the treatment status of proximate neighbors. We show that under standard assumptions (common trend and ignorability) a straightforward spatially explicit version of the benchmark difference-in-differences regression is capable of identifying both direct and indirect treatment effects. We demonstrate the finite sample performance of our spatial estimator via Monte Carlo simulations.
Original languageEnglish
Pages (from-to)123-126
JournalEconomics Letters
Volume137
DOIs
Publication statusPublished - 2015

Bibliographical note

PT: J; NR: 10; TC: 0; J9: ECON LETT; PG: 4; GA: DA0MU; UT: WOS:000367492000029

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