Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2002:20: Dynamically assigned treatments: duration models, binary treatment models, and panel data models

Jaap H. Abbring and Gerard J. van den Berg ()
Additional contact information
Jaap H. Abbring: IFAU - Institute for Labour Market Policy Evaluation, Postal: P O Box 513, SE-751 20 Uppsala, Sweden
Gerard J. van den Berg: Institute for Labour Market Policy evaluation, Postal: P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: Often, the moment of a treatment and the moment at which the outcome of interest occurs are realizations of stochastic processes with dependent unobserved determinants. Notably, both treatment and outcome are characterized by the moment they occur. We compare different methods of inference of the treatment effect, and we argue that the timing of the treatment relative to the outcome conveys useful information on the treatment effect, which is discarded in binary treatment frameworks

Keywords: Program evaluation; treatment effects; bivariate duration analysis; selection bias; hazard rate; unobserved heterogeneity; fixed effects; random effects

JEL-codes: C14; C31; C41

19 pages, August 30, 2002

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