Please join us in welcoming Amanda Agan, Sarah Cattan, Christian Goldammer, and Gabriel Ulyssea (Wed. 1/26, 12PM-1.15PM, Cobb 102)
!! PLEASE NOTE: The workshop will meet in Cobb 102 this Winter Quarter!!
TITLE: “Using MTO to open the black box of neighborhood effects.”
ABSTRACT: The objective of this paper is to empirically identify the magnitude and the main channels through which social interactions (SI) and neighborhood characteristics (NC) can affect individuals’ behavior. Although there are numerous theoretical arguments that support the idea that SI can substantially affect individuals’ behavior, the empirical literature remains far from conclusive. One of the main difficulties faced by empirical works is the fact that the neighborhood of residence is not defined randomly, which creates a potentially severe self-selection problem. In this paper, however, we use neighborhood choice as an additional source of information to identify SI effects. We use a multi-choice Roy model, which allows us to move beyond scalar treatment effect parameters and to disentangle the different channels through which SI and NC can affect individual outcomes. Our data stems from the MTO intervention, which provides a natural exclusion restriction that allows for non-parametric identification of the outcome equation.