Hi,
Is there a way to instrument a continuous treatment variable in DiD?
I can only think of estimating a first stage separately and predicting the instrumented treatment to be used in DiD, but I know that this doesn't give accurate standard errors in the second stage.
This is the code without instrumenting
Is there a way to instrument a continuous treatment variable in DiD?
I can only think of estimating a first stage separately and predicting the instrumented treatment to be used in DiD, but I know that this doesn't give accurate standard errors in the second stage.
This is the code without instrumenting
Code:
reghdfe birthrate c.treatment##i.post treatment lpop, absorb(state post)
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