NA-DiD: Extending Difference-in-Differences with Capabilities
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arXiv
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| Format: | Preprint |
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2025
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| _version_ | 1866911330741518336 |
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| author | Halkiewicz, Stanisław M. S. |
| author_facet | Halkiewicz, Stanisław M. S. |
| contents | This paper introduces the Non-Additive Difference-in-Differences (NA-DiD) framework, which extends classical DiD by incorporating non-additive measures the Choquet integral for effect aggregation. It serves as a novel econometric tool for impact evaluation, particularly in settings with non-additive treatment effects. First, we introduce the integral representation of the classial DiD model, and then extend it to non-additive measures, therefore deriving the formulae for NA-DiD estimation. Then, we give its theoretical properties. Applying NA-DiD to a simulated hospital hygiene intervention, we find that classical DiD can overestimate treatment effects, f.e. failing to account for compliance erosion. In contrast, NA-DiD provides a more accurate estimate by incorporating non-linear aggregation. The Julia implementation of the techniques used and introduced in this article is provided in the appendices. |
| format | Preprint |
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arxiv_https___arxiv_org_abs_2507_12690 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | NA-DiD: Extending Difference-in-Differences with Capabilities Halkiewicz, Stanisław M. S. Econometrics Methodology This paper introduces the Non-Additive Difference-in-Differences (NA-DiD) framework, which extends classical DiD by incorporating non-additive measures the Choquet integral for effect aggregation. It serves as a novel econometric tool for impact evaluation, particularly in settings with non-additive treatment effects. First, we introduce the integral representation of the classial DiD model, and then extend it to non-additive measures, therefore deriving the formulae for NA-DiD estimation. Then, we give its theoretical properties. Applying NA-DiD to a simulated hospital hygiene intervention, we find that classical DiD can overestimate treatment effects, f.e. failing to account for compliance erosion. In contrast, NA-DiD provides a more accurate estimate by incorporating non-linear aggregation. The Julia implementation of the techniques used and introduced in this article is provided in the appendices. |
| title | NA-DiD: Extending Difference-in-Differences with Capabilities |
| topic | Econometrics Methodology |
| url | https://arxiv.org/abs/2507.12690 |