Vancouver School of Economics
University of British Columbia
997 - 1873 East Mall
Institutional Affiliation: University of British Columbia
NBER Working Papers and Publications
|December 2016||Targeting Policies: Multiple Testing and Distributional Treatment Eﬀects|
with Steven F. Lehrer, R. Vincent Pohl: w22950
Economic theory often predicts that treatment responses may depend on individuals’ characteristics and location on the outcome distribution. Policymakers need to account for such treatment effect heterogeneity in order to efficiently allocate resources to subgroups that can successfully be targeted by a policy. However, when interpreting treatment effects across subgroups and the outcome distribution, inference has to be adjusted for multiple hypothesis testing to avoid an overestimation of positive treatment effects. We propose six new tests for treatment effect heterogeneity that make corrections for the family-wise error rate and that identify subgroups and ranges of the outcome distribution exhibiting economically and statistically significant treatment effects. We apply these tests t...