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Kevin E. Staub
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Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics (2014) 96 (2): 371–375.
Published: 01 May 2014
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This note proposes a new decomposition of average treatment effects on nonnegative outcomes. It represents the total effect as a population-weighted sum of the effects for two groups: those induced to participate by the treatment and those participating regardless of it. The usual decomposition into extensive and intensive margins used in the literature is generally incompatible with such a causal interpretation. The difference between decompositions can be substantial and yield diametrically opposed results.