TY - RPRT AU - Huber, Martin AU - Steinmayr, Andreas TI - A Framework for Separating Individual Treatment Effects from Spillover, Interaction, and General Equilibrium Effects PY - 2017/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 10648 UR - https://www.iza.org/index.php/publications/dp10648 AB - This paper suggests a causal framework for disentangling individual level treatment effects and interference effects, i.e., general equilibrium, spillover, or interaction effects related to treatment distribution. Thus, the framework allows for a relaxation of the Stable Unit Treatment Value Assumption (SUTVA), which assumes away any form of treatment-dependent interference between study participants. Instead, we permit interference effects within aggregate units, for example, regions or local labor markets, but need to rule out interference effects between these aggregate units. Borrowing notation from the causal mediation literature, we define a range of policy-relevant effects and formally discuss identification based on randomization, selection on observables, and difference-in-differences. We also present an application to a policy intervention extending unemployment benefit durations in selected regions of Austria that arguably affected ineligibles in treated regions through general equilibrium effects in local labor markets. KW - difference-in-differences KW - general equilibrium effects KW - treatment effect KW - spillover effects KW - interaction effects KW - interference effects KW - inverse probability weighting KW - propensity score KW - mediation analysis ER -