IDEAS home Printed from https://ideas.repec.org/p/ekd/009007/9388.html
   My bibliography  Save this paper

Estimating a dose-response function with heterogeneous response to confounders when treatment is continuous and endogenous

Author

Listed:
  • Christopher Baum
  • Giovanni Cerulli, CNR-IRCrES

Abstract

To improve policy analysis by formulating a new approach to the estimation of treatment effects which vary in magnitude among treated units. The paper's approach to estimating an average treatment effect (ATE) and counterpart measures for the treated (ATET) and untreated (ATENT) allows for the estimation of a functional relationship between the magnitude of treatment and the treated units' response. In a study of public subsidies to private Italian firms' R&D efforts, we find significant variation in the degree to which public funding 'crowds out' private spending on innovative activities.

Suggested Citation

  • Christopher Baum & Giovanni Cerulli, CNR-IRCrES, 2016. "Estimating a dose-response function with heterogeneous response to confounders when treatment is continuous and endogenous," EcoMod2016 9388, EcoMod.
  • Handle: RePEc:ekd:009007:9388
    as

    Download full text from publisher

    File URL: http://ecomod.net/system/files/paper-baum_cerulli.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wooldridge, Jeffrey M., 2003. "Further results on instrumental variables estimation of average treatment effects in the correlated random coefficient model," Economics Letters, Elsevier, vol. 79(2), pages 185-191, May.
    2. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    3. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    4. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    5. Michela Bia & Carlos A. Flores & Alfonso Flores-Lagunes & Alessandra Mattei, 2014. "A Stata package for the application of semiparametric estimators of dose–response functions," Stata Journal, StataCorp LLC, vol. 14(3), pages 580-604, September.
    6. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-475, March.
    7. Barbara Guardabascio & Marco Ventura, 2014. "Estimating the dose–response function through a generalized linear model approach," Stata Journal, StataCorp LLC, vol. 14(1), pages 141-158, March.
    8. Michela Bia & Alessandra Mattei, 2008. "A Stata package for the estimation of the dose–response function through adjustment for the generalized propensity score," Stata Journal, StataCorp LLC, vol. 8(3), pages 354-373, September.
    9. Giovanni Cerulli, 2010. "Modelling and Measuring the Effect of Public Subsidies on Business R&D: A Critical Review of the Econometric Literature," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 421-449, September.
    10. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    11. Giovanni Cerulli, 2015. "ctreatreg: Command for fitting dose–response models under exogenous and endogenous treatment," Stata Journal, StataCorp LLC, vol. 15(4), pages 1019-1045, December.
    12. Wooldridge, Jeffrey M., 1997. "On two stage least squares estimation of the average treatment effect in a random coefficient model," Economics Letters, Elsevier, vol. 56(2), pages 129-133, October.
    13. Giovanni Cerulli, 2014. "ivtreatreg: A command for fitting binary treatment models with heterogeneous response to treatment and unobservable selection," Stata Journal, StataCorp LLC, vol. 14(3), pages 453-480, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Avenyo, Elvis Korku & Konte, Maty & Mohnen, Pierre, 2019. "The employment impact of product innovations in sub-Saharan Africa: Firm-level evidence," Research Policy, Elsevier, vol. 48(9), pages 1-1.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giovanni Cerulli & Bianca Poti', 2016. "Explaining firm sensitivity to R&D subsidies within a dose-response model: The role of financial constraints, real cost of investment, and strategic value of R&D," DEM Working Papers 2016/09, Department of Economics and Management.
    2. Giovanni Cerulli & Bianca Potì, 2014. "The Impact of Public Support Intensity on Business R&D: Evidence from a Dose-Response Approach," ERSA conference papers ersa14p625, European Regional Science Association.
    3. Andrea Filippetti & Giovanni Cerulli, 2018. "Are local public services better delivered in more autonomous regions? Evidence from European regions using a dose‐response approach," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 801-826, August.
    4. Tamru, Seneshaw & Minten, Bart, 2018. "Investing in wet mills and washed coffee in Ethiopia: Benefits and constraints," ESSP working papers 121, International Food Policy Research Institute (IFPRI).
    5. Beck, Mathias & Lopes-Bento, Cindy & Schenker-Wicki, Andrea, 2016. "Radical or incremental: Where does R&D policy hit?," Research Policy, Elsevier, vol. 45(4), pages 869-883.
    6. Kim Kiman & Yu Jongmin, 2022. "Linear or Nonlinear? Investigation an Affect of Public Subsidies on SMEs R&D Investment," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2519-2546, September.
    7. Dumont, Michel, 2022. "Public support to business research and development in Belgium: fourth evaluation," MPRA Paper 115418, University Library of Munich, Germany.
    8. Giovanni Cerulli & Roberto Gabriele & Bianca Potì, 2016. "The role of firm R&D effort and collaboration as mediating drivers of innovation policy effectiveness," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 426-447, July.
    9. Giovanni Cerulli, 2014. "CTREATREG: Stata module for estimating dose-response models under exogenous and endogenous treatment," CERIS Working Paper 201405, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    10. Giovanni Cerulli, 2014. "ntreatreg: a Stata module for estimation of treatment effects in the presence of neighborhood interactions," United Kingdom Stata Users' Group Meetings 2014 15, Stata Users Group.
    11. Ugur, Mehmet & Trushin, Eshref, 2018. "Asymmetric information and heterogeneous effects of R&D subsidies: evidence on R&D investment and employment of R&D personel," Greenwich Papers in Political Economy 21943, University of Greenwich, Greenwich Political Economy Research Centre.
    12. Klein, Tobias J., 2010. "Heterogeneous treatment effects: Instrumental variables without monotonicity?," Journal of Econometrics, Elsevier, vol. 155(2), pages 99-116, April.
    13. Jeffrey Smith & Arthur Sweetman, 2016. "Viewpoint: Estimating the causal effects of policies and programs," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 871-905, August.
    14. Chad D. Meyerhoefer & Muzhe Yang, 2011. "The Relationship between Food Assistance and Health: A Review of the Literature and Empirical Strategies for Identifying Program Effects," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(3), pages 304-344.
    15. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2003. "Evaluating the impact of education on earnings in the UK: Models, methods and results from the NCDS," IFS Working Papers W03/20, Institute for Fiscal Studies.
    16. Michel Dumont, 2015. "Working Paper 05-15 - Evaluation of federal tax incentives for private R&D in Belgium: An update," Working Papers 1505, Federal Planning Bureau, Belgium.
    17. Lewbel, Arthur, 2007. "Endogenous selection or treatment model estimation," Journal of Econometrics, Elsevier, vol. 141(2), pages 777-806, December.
    18. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    19. Haji, Jema, 2022. "Impact of agricultural commercialization on child nutrition in Ethiopia," Food Policy, Elsevier, vol. 113(C).
    20. John K. Dagsvik & TorbjØrn HÆgeland & Arvid Raknerud, 2011. "Estimating the returns to schooling: a likelihood approach based on normal mixtures," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 613-640, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekd:009007:9388. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Theresa Leary (email available below). General contact details of provider: https://edirc.repec.org/data/ecomoea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.