Evaluating Local Policies in Centralized Markets
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arXiv
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| Format: | Preprint |
| Published: |
2025
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| _version_ | 1866908606805311488 |
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| author | Arkhangelsky, Dmitry Rutgers, Wisse |
| author_facet | Arkhangelsky, Dmitry Rutgers, Wisse |
| contents | We study a policy evaluation problem in centralized markets. We show that the aggregate impact of any marginal reform, the Marginal Policy Effect (MPE), is nonparametrically identified using data from a baseline equilibrium, without additional variation in the policy rule. We achieve this by constructing the equilibrium-adjusted outcome: a policy-invariant structural object that augments an agent's outcome with the full equilibrium externality their participation imposes on others. We show that these externalities can be constructed using estimands that are already common in empirical work. The MPE is identified as the covariance between our structural outcome and the reform's direction, providing a flexible tool for optimal policy targeting and a novel bridge to the Marginal Treatment Effects literature. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2510_20032 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Evaluating Local Policies in Centralized Markets Arkhangelsky, Dmitry Rutgers, Wisse General Economics Economics We study a policy evaluation problem in centralized markets. We show that the aggregate impact of any marginal reform, the Marginal Policy Effect (MPE), is nonparametrically identified using data from a baseline equilibrium, without additional variation in the policy rule. We achieve this by constructing the equilibrium-adjusted outcome: a policy-invariant structural object that augments an agent's outcome with the full equilibrium externality their participation imposes on others. We show that these externalities can be constructed using estimands that are already common in empirical work. The MPE is identified as the covariance between our structural outcome and the reform's direction, providing a flexible tool for optimal policy targeting and a novel bridge to the Marginal Treatment Effects literature. |
| title | Evaluating Local Policies in Centralized Markets |
| topic | General Economics Economics |
| url | https://arxiv.org/abs/2510.20032 |