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Testing for a treatment effect in a heterogeneous population: A modified sign-test statistic and a leapfrog statistic

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  • Jason Abrevaya

Abstract

This paper proposes two non-parametric statistics that test for a treatment effect in a heterogeneous population. In the model considered, data on two examinations for both a control and a treatment group are needed to perform the test. The model allows for individual (fixed) effects that may be correlated with the choice of treatment. In addition, the model allows for an unspecified, monotonic transformation of the response variable. The techniques are illustrated by testing whether high levels of unemploymentbenefit eligibility affect the consumption patterns of unemployed American workers.

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  • Jason Abrevaya, 2000. "Testing for a treatment effect in a heterogeneous population: A modified sign-test statistic and a leapfrog statistic," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 679-687.
    • Handle: RePEc:taf:japsta:v:27:y:2000:i:6:p:679-687
    DOI: 10.1080/02664760050081852
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    References listed on IDEAS

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    1. Jonathan Gruber, 1994. "The Consumption Smoothing Benefits of Unemployment Insurance," NBER Working Papers 4750, National Bureau of Economic Research, Inc.
    2. Gruber, Jonathan, 1997. "The Consumption Smoothing Benefits of Unemployment Insurance," American Economic Review, American Economic Association, vol. 87(1), pages 192-205, March.
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    Cited by:

    1. Mullahy, John, 2018. "Individual results may vary: Inequality-probability bounds for some health-outcome treatment effects," Journal of Health Economics, Elsevier, vol. 61(C), pages 151-162.
    2. John Mullahy, 2017. "Individual Results May Vary: Elementary Analytics of Inequality-Probability Bounds, with Applications to Health-Outcome Treatment Effects," NBER Working Papers 23603, National Bureau of Economic Research, Inc.
    3. Jan Hanousek & Evžen Kočenda, 2011. "Learning by investing," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(1), pages 125-149, January.

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