[gov3009-l] Gov 3009 Applied Statistics Workshop (3/30) -- Hannah Druckenmiller [Zoom]

Dear Applied Statistics Workshop Community, Our next meeting of the semester will be at *12:10 pm (EST) Wednesday, March 30*, where Hannah Druckenmiller <https://hannahdruckenmiller.com> (Resources for the Future) presents "Accounting for Unobservable Heterogeneity in Cross Section Using Spatial First Differences." Please note that this meeting will be *entirely on Zoom <https://harvard.zoom.us/j/97004196610?pwd=eGFydkF5RDRjUlk5RVcyTjV6OStUQT09>* . *Abstract* We develop a simple cross-sectional research design to identify causal effects that is robust to unobservable heterogeneity. When many observational units are dense in physical space, it may be sufficient to regress the “spatial first differences” (SFD) of the outcome on the treatment and omit all covariates. This approach is conceptually similar to first differencing approaches in time-series or panel models, except the index for time is replaced with an index for locations in space. The SFD design identifies plausibly causal effects, so long as local changes in the treatment and unobservable confounders are not systematically correlated between immediately adjacent neighbors. We demonstrate the SFD approach by recovering new cross-sectional estimates for the effects of time-invariant geographic factors, soil and climate, on long-run average crop productivities across US counties — relationships that are notoriously confounded by unobservables but crucial for guiding economic decisions, such as land management and climate policy. *Zoom link*: https://harvard.zoom.us/j/97004196610?pwd=eGFydkF5RDRjUlk5RVcyTjV6OStUQT09 *When:* Wednesday, March 30 at 12:10 - 1:30 pm. *Schedule of the workshop*: https://projects.iq.harvard.edu/applied.stats.workshop-gov3009 Looking forward to seeing you all on Wednesday! Best, Sooahn