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来源类型Working Paper
规范类型报告
DOI10.3386/w25177
来源IDWorking Paper 25177
Accounting for Unobservable Heterogeneity in Cross Section Using Spatial First Differences
Hannah Druckenmiller; Solomon Hsiang
发表日期2018-10-22
出版年2018
语种英语
摘要We develop a simple cross-sectional research design to identify causal effects that is robust to unobservable heterogeneity. When many observational units are dense in physical space, it may be sufficient to regress the “spatial first differences” (SFD) of the outcome on the treatment and omit all covariates. This approach is conceptually similar to first differencing approaches in time-series or panel models, except the index for time is replaced with an index for locations in space. The SFD design identifies plausibly causal effects, even when no instruments are available, so long as local changes in the treatment and unobservable confounders are not systematically correlated between immediately adjacent neighbors. We demonstrate the SFD approach by recovering new cross-sectional estimates for the effects of time-invariant geographic factors, soil and climate, on long-run average crop productivities across US counties — relationships that are notoriously confounded by unobservables but crucial for guiding economic decisions, such as land management and climate policy.
主题Econometrics ; Estimation Methods ; Health, Education, and Welfare ; Education ; Environmental and Resource Economics ; Agriculture ; Environment
URLhttps://www.nber.org/papers/w25177
来源智库National Bureau of Economic Research (United States)
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条目标识符http://119.78.100.153/handle/2XGU8XDN/582851
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Hannah Druckenmiller,Solomon Hsiang. Accounting for Unobservable Heterogeneity in Cross Section Using Spatial First Differences. 2018.
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