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Université de Fribourg

Direct and Indirect Effects based on Changes-in-Changes

Huber, Martin ; Schelker, Mark ; Strittmatter, Anthony

In: Journal of Business and Economic Statistics, 2019, p. 1-60

We propose a novel approach for causal mediation analysis based on changesin- changes assumptions restricting unobserved heterogeneity over time. This allows disentangling the causal effect of a binary treatment on a continuous outcome into an indirect effect operating through a binary intermediate variable (called mediator) and a direct effect running via other causal mechanisms. We identify...