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Distributional Policy Effects with Many Treatment Outcomes

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  • Cañón Salazar Carlos Iván

Abstract

Different segments of a population affected by the same policy intervention may have different responses. We study the role of equilibrium effects on explaining these differences. Our case study is the government's extension of guarantees during the Great Recession to certain debt issuers. We extend Athey and Imbens [2006] to a scenario of multiple outcome variables, and identify the counterfactual joint distribution. We find the intervention increased the funding for the treated segments, but at the cost of higher spreads. Finally, these equilibrium effects operate dissimilarly along the segments of the treated group, in the extreme, can produce undesired effects.

Suggested Citation

  • Cañón Salazar Carlos Iván, 2016. "Distributional Policy Effects with Many Treatment Outcomes," Working Papers 2016-01, Banco de México.
    • Handle: RePEc:bdm:wpaper:2016-01
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Interventions; Stigma; Identification; Nonlinear Difference-In-Difference; Copulas;
    All these keywords.

    JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • G01 - Financial Economics - - General - - - Financial Crises
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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