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76 | 76 | "|-----------|---------------------------|\n", |
77 | 77 | "| ATT(d) | Total earnings gain from *d* hours of training vs. no training, across all treated workers (requires strong PT) |\n", |
78 | 78 | "| ACRT(d) | Earnings gain from **one additional hour** at level *d* (marginal effect; requires strong PT) |\n", |
79 | | - "| ATT_glob | Average effect of any training vs. none (binarized; valid under standard PT) |\n", |
| 79 | + "| ATT_glob | Average effect of any training vs. none (binarized). Identifies ATT_loc under standard PT; equals ATT_glob under strong PT |\n", |
80 | 80 | "| ACRT_glob | Average marginal return to an extra hour of training (requires strong PT) |\n", |
81 | 81 | "\n", |
82 | 82 | "The `ContinuousDiD` estimator from Callaway, Goodman-Bacon & Sant'Anna (2024) handles all three problems. It estimates the full dose-response curve using B-splines and provides valid inference." |
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226 | 226 | "source": [ |
227 | 227 | "### Interpreting the global parameters\n", |
228 | 228 | "\n", |
229 | | - "- **ATT_glob** is the average total effect of training (at the observed dose levels) compared to no training. It answers: \"On average, how much more do trained workers earn?\"\n", |
230 | | - "- **ACRT_glob** is the average marginal return to an additional hour of training. It answers: \"What is one more hour of training worth, on average?\"\n", |
231 | | - "\n", |
232 | | - "Note: ACRT_glob and the dose-response interpretation of ATT_glob require strong parallel trends (see assumptions above). Under standard PT, the binarized overall effect is still identified.\n", |
| 229 | + "- **ATT_glob** is the average total effect of training (at the observed dose levels) compared to no training. It answers: \"On average, how much more do trained workers earn?\" The API reports this as `overall_att`. Under standard PT, this identifies the local average effect (ATT_loc); under strong PT, it additionally equals the global average (ATT_glob).\n", |
| 230 | + "- **ACRT_glob** is the average marginal return to an additional hour of training. It answers: \"What is one more hour of training worth, on average?\" This requires strong PT for causal interpretation.\n", |
233 | 231 | "\n", |
234 | 232 | "Analytical standard errors are the default (fast, no resampling). For bootstrap-based inference, set `n_bootstrap` (see Section 6)." |
235 | 233 | ] |
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568 | 566 | "source": [ |
569 | 567 | "## 7. Comparison to Binary DiD\n", |
570 | 568 | "\n", |
571 | | - "What if we ignore dose entirely and just run a standard binary Callaway-Sant'Anna estimator? Both approaches should give a similar **overall ATT** (treated vs. untreated), but the binary approach discards all dose information — no dose-response curve, no marginal effects.\n", |
| 569 | + "What if we ignore dose entirely and just run a standard binary Callaway-Sant'Anna estimator? Both approaches should give a similar **binarized ATT** (treated vs. untreated), but the binary approach discards all dose information — no dose-response curve, no marginal effects.\n", |
572 | 570 | "\n", |
573 | | - "Note: both estimators compute ATT_glob as a binarized mean difference (treated vs. untreated), so the values should be very close. Any small differences arise from weighting or aggregation choices, control group or base period settings, or finite-sample variation — not from spline smoothing. The continuous approach provides the full dose-response curve on top of the overall effect." |
| 571 | + "Note: both estimators compute the binarized ATT as a simple mean difference (treated vs. untreated), so the values should be very close. Under standard PT this identifies ATT_loc (the local average); under strong PT it additionally equals ATT_glob. Any small differences arise from weighting or aggregation choices, control group or base period settings, or finite-sample variation — not from spline smoothing. The continuous approach provides the full dose-response curve on top of the binarized effect." |
574 | 572 | ] |
575 | 573 | }, |
576 | 574 | { |
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