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- Title
On the Size Distortion of a Test for Equality between the ATE and FE Estimands.
- Authors
Pacini, David
- Abstract
This note investigates the numerical performance of an existing asymptotic test for the null hypothesis of equality between the average treatment effect (ATE) and the group fixed-effect (FE) estimands based on the standardized difference between ATE and FE estimators. It shows that this test has a size distortion. This distortion has implications to empirical economic research. It can lead to erroneously confirm the relevance of heterogeneous responses to policy interventions.
- Subjects
ASYMPTOTIC theory in statistical hypothesis testing; ESTIMATES; EQUALITY; NULL hypothesis; PERFORMANCE
- Publication
Journal of Econometric Methods, 2019, Vol 8, Issue 1, pN.PAG
- ISSN
2156-6674
- Publication type
Article
- DOI
10.1515/jem-2018-0011