IDEAS home Printed from https://ideas.repec.org/p/mhe/chemon/2024-18.html
   My bibliography  Save this paper

Taking an Extra Moment to Consider Treatment Effects on Distributions

Author

Listed:
  • Gawain Heckley

    (Health Economics, Faculty of Medicine, Lund University)

  • Dennis Petrie

    (Centre for Health Economics, Monash Business School, Monash University)

Abstract

This paper presents a flexible method, Parameter Estimation by Raw Moments (PERM), to evaluate a policy’s impact on parameters of the distribution of outcomes. Such parameters include the variance (E[Y2]−E[Y]2), skewness and covariance. While many studies estimate the mean (first moment), PERM extends this to estimate higher order moments, enabling calculation of distribution parameter treatment effects. Two implementations are discussed: regression with controls and DiD with staggered rollout. Applying PERM DiD to a Swedish school reform shows it reduced education inequality but increased earnings variance resulting in a lower covariance between education and earnings.

Suggested Citation

  • Gawain Heckley & Dennis Petrie, 2024. "Taking an Extra Moment to Consider Treatment Effects on Distributions," Papers 2024-18, Centre for Health Economics, Monash University.
    • Handle: RePEc:mhe:chemon:2024-18
    as

    Download full text from publisher

    File URL: http://monash-ch-econ-wps.s3-ap-southeast-2.amazonaws.com/RePEc/mhe/chemon/2024-18.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Holmlund, Helena, 2007. "A Researcher's Guide to the Swedish Compulsory School Reform," Working Paper Series 9/2007, Stockholm University, Swedish Institute for Social Research.
    2. Heckley, Gawain & Gerdtham, Ulf-G. & Kjellsson, Gustav, 2016. "A general method for decomposing the causes of socioeconomic inequality in health," Journal of Health Economics, Elsevier, vol. 48(C), pages 89-106.
    Full references (including those not matched with items on IDEAS)

    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. Martin Fischer & Martin Karlsson & Therese Nilsson, 2013. "Effects of Compulsory Schooling on Mortality: Evidence from Sweden," IJERPH, MDPI, vol. 10(8), pages 1-23, August.
    2. Peng Nie & Andrew E. Clarck & Conchita D'Ambrosio & Lanlin Ding, 2020. "Income-related health inequality in urban China (1991-2015): The role of homeownership and housing conditions," Working Papers 524, ECINEQ, Society for the Study of Economic Inequality.
    3. Roselinde Kessels & Guido Erreygers, 2016. "Structural equation modeling for decomposing rank-dependent indicators of socioeconomic inequality of health: an empirical study," Health Economics Review, Springer, vol. 6(1), pages 1-13, December.
    4. Meghir, Costas & Palme, Mårten & Simeonova, Emilia, 2012. "Education, Health and Mortality: Evidence from a Social Experiment," Research Papers in Economics 2012:4, Stockholm University, Department of Economics.
    5. Sandra E Black & Paul J Devereux & Petter Lundborg & Kaveh Majlesi, 2018. "Learning to Take Risks? The Effect of Education on Risk-Taking in Financial Markets," Review of Finance, European Finance Association, vol. 22(3), pages 951-975.
    6. Sonia Bhalotra & Martin Karlsson & Therese Nilsson & Nina Schwarz, 2022. "Infant Health, Cognitive Performance, and Earnings: Evidence from Inception of the Welfare State in Sweden," The Review of Economics and Statistics, MIT Press, vol. 104(6), pages 1138-1156, November.
    7. Francesco Renna & Vasilios D. Kosteas & Kuchibhotla Dinkar, 2021. "Inequality in health insurance coverage before and after the Affordable Care Act," Health Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 384-402, February.
    8. Martin Fischer & Martin Karlsson & Therese Nilsson & Nina Schwarz, 2020. "The Long-Term Effects of Long Terms – Compulsory Schooling Reforms in Sweden," Journal of the European Economic Association, European Economic Association, vol. 18(6), pages 2776-2823.
    9. Stephen Machin & Kjell G. Salvanes & Panu Pelkonen, 2012. "Education And Mobility," Journal of the European Economic Association, European Economic Association, vol. 10(2), pages 417-450, April.
    10. Alexander Silbersdorff & Kai Sebastian Schneider, 2019. "Distributional Regression Techniques in Socioeconomic Research on the Inequality of Health with an Application on the Relationship between Mental Health and Income," IJERPH, MDPI, vol. 16(20), pages 1-28, October.
    11. Gathmann, Christina & Jürges, Hendrik & Reinhold, Steffen, 2015. "Compulsory schooling reforms, education and mortality in twentieth century Europe," Social Science & Medicine, Elsevier, vol. 127(C), pages 74-82.
    12. Martin Fischer & Ulf-G Gerdtham & Gawain Heckley & Martin Karlsson & Gustav Kjellsson & Therese Nilsson, 2021. "Education and health: long-run effects of peers, tracking and years," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 36(105), pages 3-49.
    13. Meghir, Costas & Palme, Mårten & Schnabel, Marieke, 2011. "The Effect of Education Policy on Crime: An Intergenerational Perspective," IZA Discussion Papers 6142, Institute of Labor Economics (IZA).
    14. Martin Fischer & Gawain Heckley & Martin Karlsson & Therese Nilsson, 2022. "Revisiting Sweden's comprehensive school reform: Effects on education and earnings," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(4), pages 811-819, June.
    15. Lundborg, Petter & Majlesi, Kaveh, 2018. "Intergenerational transmission of human capital: Is it a one-way street?," Journal of Health Economics, Elsevier, vol. 57(C), pages 206-220.
    16. Costas Meghir & Mårten Palme & Emilia Simeonova, 2013. "Education, Cognition and Health: Evidence from a Social Experiment," NBER Working Papers 19002, National Bureau of Economic Research, Inc.
    17. Laura Rossouw & Hana Ross, 2021. "Understanding Period Poverty: Socio-Economic Inequalities in Menstrual Hygiene Management in Eight Low- and Middle-Income Countries," IJERPH, MDPI, vol. 18(5), pages 1-14, March.
    18. Roselinde Kessels & Guido Erreygers, 2019. "A direct regression approach to decomposing socioeconomic inequality of health," Health Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 884-905, July.
    19. Gaetano Musella & Massimiliano Agovino & Mariaconcetta Casaccia & Alessandro Crociata, 2019. "Evaluating waste collection management: the case of macro-areas and municipalities in Italy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(6), pages 2857-2889, December.
    20. Lundborg, Petter & Nilsson, Anton & Rooth, Dan-Olof, 2012. "Parental Education and Offspring Outcomes: Evidence from the Swedish Compulsory Schooling Reform," IZA Discussion Papers 6570, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Causal Inference; Policy Evaluation; Distribution Impacts; Income Inequality; Education Inequality;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:mhe:chemon:2024-18. 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: Johannes Kunz (email available below). General contact details of provider: https://edirc.repec.org/data/dxmonau.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.