Episode 13: Finally the Continuous Diff-in-Diff Estimator Shows Up!

Caitlin and I are back after a one week hiatus as we each ran around traveling in our respective parts of the world. Probably for the best, as it allowed two weeks of twoway fixed effects decompositions to marinate. But now it’s time — can we finally see what a continuous treatment difference-in-differences estimator actually is for goodness sake? And the answer is sort of!In this episode, me and Caitlin wrap up a walk through of what parameters we are identifying with our abortion-marriage paper. I was really puzzled to be honest in the last episode as to what a “dose” even meant in our context. As you may recall, we are studying the effect of House Bill 2 which caused half of Texas’s abortion clinics to close, and in turn made the distance to the nearest abortion clinic to rise. But that led us to wonder:1. Are we studying the effect of distance to the nearest clinic after House Bill 2, or2. Are we studying the effect of the change in distance to the nearest clinic after House Bill 2?So, have fun as you listen to us talk through it out and finally realize at the end that it would appear our dose must be one of those and cannot be the other due to the nature of the design and diff-in-diff itself. Hint: no anticipation places some rails on us. See if you can figure out why.But then we also dive into the continuous treatment diff-in-diff estimator. You’ll learn about splines! You’ll learn about kernels! You’ll learn about polynomials! You’ll learn about b-splines and wavelets and a bunch of other things that draw curvy lines! And you’ll learn about the one situation when you have the permission to interpret that line as a causal effect too!Thanks again for all your support! We hope you enjoy this episode!Scott's Mixtape Substack is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Get full access to Scott's Mixtape Substack at causalinf.substack.com/subscribe