Imagine a region suffering from a widening income gap that becomes eligible for a generous transfer programme (the treatment). Imagine difference-in-differences analysis (DD) — a before-and-after comparison of the income-level difference — shows that the handicap has risen. Most observers...

Imagine an impoverished region that becomes eligible for a generous transfer programme (the treatment). Imagine difference-in-differences analysis (DiD)-a before-and-after comparison of the income-level handicap-shows that the handicap has risen. Most observers would conclude to the policy's...

In many microeconometric models we use distances. For instance, in modelling the individual behavior in labor economics or in health studies, the distance from a relevant point of interest (such as a hospital or a workplace) is often used as a predictor in a regression framework. However, in...