Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125093
Authors: 
Delgado, Michael S.
Florax, Raymond J.G.M.
Year of Publication: 
2015
Series/Report no.: 
Tinbergen Institute Discussion Paper 15-091/VIII
Abstract: 
We consider treatment effect estimation via a difference-in-difference approach for data with local spatial interaction such that the 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.
Subjects: 
Difference-in-differences
Monte Carlo simulation
program evaluation
spatial autocorrelation
spatial interaction
JEL: 
C21
C53
Document Type: 
Working Paper

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