Economic theory predicts that adverse shocks during early childhood have detrimental short- and long-run consequences for children's development. We examine this hypothesis by analyzing the short-and long-run effects on children's health and education of a specific shock: housing damages caused...

This paper proposes a difference-in-differences approach for disentangling a total treatment effect on some outcome into a direct impact as well as an indirect effect operating through a binary intermediate variable - or mediator - within strata defined upon how the mediator reacts to the...

Understanding the mechanisms through which treatment effects come about is crucial for designing effective interventions. The identification of such causal mechanisms is challenging and typically requires strong assumptions. This paper discusses identification and estimation of natural direct...