October 10, 2022
PMAP 8521: Program evaluation
Andrew Young School of Policy Studies
Models vs. designs
Models vs. designs
Interactions and regression
Models vs. designs
Interactions and regression
Simple diff-in-diff
Models vs. designs
Interactions and regression
Simple diff-in-diff
Two-way fixed effects
Imbens: A ton of CI stuff + attempting to bridge DAG world with situation-based world
https://twitter.com/NobelPrize/status/1447502627114205187 - PA/NJ
Alan Krueger died by suicide in 2019
Design-based vs.
model-based inference
Special situations vs. controlling for stuff
How would you know when it is appropriate to use a quasi-experiment over an RCT?
The goal of all these methods is to isolate
(or identify) the arrow between treatment → outcome
The goal of all these methods is to isolate
(or identify) the arrow between treatment → outcome
Model-based identification
DAGs Matching Inverse probability weighting
The goal of all these methods is to isolate
(or identify) the arrow between treatment → outcome
Model-based identification
DAGs Matching Inverse probability weighting
Design-based identification
Randomized controlled trials Difference-in-differences
Regression discontinuity Instrumental variables
Use a DAG and do-calculus to isolate arrow
Core assumption:
selection on observables
Everything that needs to
be adjusted is measurable;
no unobserved confounding
Big assumption!
This is why lots of people don't like DAG-based adjustment
Use a special situation to isolate arrow
RCTs
Use randomization
to remove confounding
Use a special situation to isolate arrow
RCTs
Use randomization
to remove confounding
Difference-in-differences
Use before/after & treatment/control
differences to remove confounding
Which is better or more credible?
RCTs, quasi experiments,
or DAG-based models?
There's no hierarchy!
Can we talk more about interaction terms and how to interpret them?
Are interaction effects in regression always more accurate of a difference than running a "regular" regression without them?
Regression is just fancy averages!
1849
Cholera deaths per 100,000
Southwark & Vauxhall: 1,349
Lambeth: 847
1854
Cholera deaths per 100,000
Southwark & Vauxhall: 1,466
Lambeth: 193
When doing your subtracting to get
your differences in the matrix, is it better
to do the vertical or horizontal subtractions?
Are there situations where
one is preferable to the other?
Why are we learning
two ways to do diff-in-diff?
(2x2 matrix vs. lm()
)
What happened to confounding??
Now we're only looking
at just two "confounders"?
The parallel trends assumption takes care of that
What group level is best for comparison? For example, if we are looking at policy change in NJ, is it best to compare with just one or two similar states? How similar do the populations need to be?
Wouldn't matching be better?
Do we have to think about balance when dealing with observational data in diff in diff?
Wouldn't matching be better? Sure, if you're doing state-level stuff. But their data was restaurant level
Balance: Maybe. With just two states/villages/countries/whatever, yes. With lots, the state/year fixed effects pick up those trends for you
Minimum legal drinking age
MLDA reduction
Two states: Alabama vs. Arkansas
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
Organ donations
Two states: California vs. New Jersey
Donation rate = β0+β1 California+β2 After Q22011 + β3 (California×After Q22011)
Two states: Alabama vs. Arkansas
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
All states: Treatment == 1
if legal for 18-20-year-olds to drink
Mortality = β0+β1 Treatment+β2 State+β3 Year
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
vs.
Mortality = β0+β1 Treatment+β2 State+β3 Year
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
vs.
Mortality = β0+β1 Treatment+β2 State+β3 Year
vs.
Mortality = β0+β1 Treatment+β2 State+β3 Year +β4 (State×Year)
Donation rate = β0+β1 California+β2 After Q22011 + β3 (California×After Q22011)
vs.
Donation rate = β0+β1 Treatment +β2 State+β3 Quarter
This is good for ethical reasons!
Blog post
How do we know when we've got
the right confounders in our DAG?
How do we solve the fact that
we have so many unknowns in our DAG?
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October 10, 2022
PMAP 8521: Program evaluation
Andrew Young School of Policy Studies
Models vs. designs
Models vs. designs
Interactions and regression
Models vs. designs
Interactions and regression
Simple diff-in-diff
Models vs. designs
Interactions and regression
Simple diff-in-diff
Two-way fixed effects
Imbens: A ton of CI stuff + attempting to bridge DAG world with situation-based world
https://twitter.com/NobelPrize/status/1447502627114205187 - PA/NJ
Alan Krueger died by suicide in 2019
Design-based vs.
model-based inference
Special situations vs. controlling for stuff
How would you know when it is appropriate to use a quasi-experiment over an RCT?
The goal of all these methods is to isolate
(or identify) the arrow between treatment → outcome
The goal of all these methods is to isolate
(or identify) the arrow between treatment → outcome
Model-based identification
DAGs Matching Inverse probability weighting
The goal of all these methods is to isolate
(or identify) the arrow between treatment → outcome
Model-based identification
DAGs Matching Inverse probability weighting
Design-based identification
Randomized controlled trials Difference-in-differences
Regression discontinuity Instrumental variables
Use a DAG and do-calculus to isolate arrow
Core assumption:
selection on observables
Everything that needs to
be adjusted is measurable;
no unobserved confounding
Big assumption!
This is why lots of people don't like DAG-based adjustment
Use a special situation to isolate arrow
RCTs
Use randomization
to remove confounding
Use a special situation to isolate arrow
RCTs
Use randomization
to remove confounding
Difference-in-differences
Use before/after & treatment/control
differences to remove confounding
Which is better or more credible?
RCTs, quasi experiments,
or DAG-based models?
There's no hierarchy!
Can we talk more about interaction terms and how to interpret them?
Are interaction effects in regression always more accurate of a difference than running a "regular" regression without them?
Regression is just fancy averages!
1849
Cholera deaths per 100,000
Southwark & Vauxhall: 1,349
Lambeth: 847
1854
Cholera deaths per 100,000
Southwark & Vauxhall: 1,466
Lambeth: 193
When doing your subtracting to get
your differences in the matrix, is it better
to do the vertical or horizontal subtractions?
Are there situations where
one is preferable to the other?
Why are we learning
two ways to do diff-in-diff?
(2x2 matrix vs. lm()
)
What happened to confounding??
Now we're only looking
at just two "confounders"?
The parallel trends assumption takes care of that
What group level is best for comparison? For example, if we are looking at policy change in NJ, is it best to compare with just one or two similar states? How similar do the populations need to be?
Wouldn't matching be better?
Do we have to think about balance when dealing with observational data in diff in diff?
Wouldn't matching be better? Sure, if you're doing state-level stuff. But their data was restaurant level
Balance: Maybe. With just two states/villages/countries/whatever, yes. With lots, the state/year fixed effects pick up those trends for you
Minimum legal drinking age
MLDA reduction
Two states: Alabama vs. Arkansas
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
Organ donations
Two states: California vs. New Jersey
Donation rate = β0+β1 California+β2 After Q22011 + β3 (California×After Q22011)
Two states: Alabama vs. Arkansas
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
All states: Treatment == 1
if legal for 18-20-year-olds to drink
Mortality = β0+β1 Treatment+β2 State+β3 Year
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
vs.
Mortality = β0+β1 Treatment+β2 State+β3 Year
Mortality = β0+β1 Alabama+β2 After 1975 + β3 (Alabama×After 1975)
vs.
Mortality = β0+β1 Treatment+β2 State+β3 Year
vs.
Mortality = β0+β1 Treatment+β2 State+β3 Year +β4 (State×Year)
Donation rate = β0+β1 California+β2 After Q22011 + β3 (California×After Q22011)
vs.
Donation rate = β0+β1 Treatment +β2 State+β3 Quarter
This is good for ethical reasons!
Blog post
How do we know when we've got
the right confounders in our DAG?
How do we solve the fact that
we have so many unknowns in our DAG?