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Many commonly used treatment effects estimators rely on the unconfoundedness assumption ("selection on observables") which is fundamentally non-testable. When evaluating the effects of labor market policies, researchers need to observe variables that affect both treatment participation and labor...
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We estimate the effect of government spending shocks on the US economy with a time-varying parameter vector … pattern of fiscal shock responses neither completely fits the predictions of the New Keynesian model of an economy subject to …
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