Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/145035 
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper No. 6000
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper proposes a difference-in-differences approach for disentangling a total treatment effect on some outcome into a direct impact as well as an indirect effect operating through a binary intermediate variable – or mediator – within strata defined upon how the mediator reacts to the treatment. We show under which assumptions the direct effects on the always and never takers, whose mediator is not affected by the treatment, as well as the direct and indirect effects on the compliers, whose mediator reacts to the treatment, are identified. We provide an empirical application based on the Vietnam draft lottery. The results suggest that a high draft risk due to the lottery leads to a relative increase in the support for the Republican Party and that this increase is mostly driven by those complying with the lottery outcome.
Subjects: 
treatment effects
causal mechanisms
direct and indirect effects
Vietnam War lottery
political preferences
JEL: 
C21
C22
D70
D72
Document Type: 
Working Paper
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