Distributional policy effects with many treatment outcomes

Arbeitspapier

Different segments of a population affected by the same policy intervention may have different responses. We study the role of equilibrium effects on explaining these differences. Our case study is the government's extension of guarantees during the Great Recession to certain debt issuers. We extend Athey and Imbens [2006] to a scenario of multiple outcome variables, and identify the counterfactual joint distribution. We find the intervention increased the funding for the treated segments, but at the cost of higher spreads. Finally, these equilibrium effects operate dissimilarly along the segments of the treated group, in the extreme, can produce undesired effects.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 2016-01

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors ; Financial Institutions and Services: Government Policy and Regulation ; Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
• Subject: Interventions ; Stigma ; Identification ; Nonlinear Difference-In-Difference ; Copulas

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cañón Salazar, Carlos Iván
• Event: Veröffentlichung
• (who): Banco de México
• (where): Ciudad de México
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/129949
• Last update: 10.03.2025, 11:45 AM CET