Treatment Effect Accounting for Network Changes: Evidence from a Randomized Intervention

44 Pages Posted: 14 Apr 2013 Last revised: 25 Nov 2015

See all articles by Margherita Comola

Margherita Comola

Paris School of Economics (PSE); Université Paris I Panthéon-Sorbonne

Silvia Prina

Case Western Reserve University - Weatherhead School of Management - Department of Economics

Date Written: November 23, 2015

Abstract

Networks may rewire in response to interventions. We propose a measure of the total treatment effect for those situations where an intervention may affect the network structure. To build this measure, we develop a treatment response model allowing for dynamic peer effects. We illustrate our results using unique panel data on the network of informal financial transactions before and after a field experiment that randomized access to savings accounts in Nepal. Using data on expenditures in medicines and traditional remedies, we show that standard treatment effect measures neglecting network changes could be underestimated by over one third in this context.

Keywords: treatment effect; time-varying networks; peer effects; financial access

JEL Classification: C31; D85; G2; O16

Suggested Citation

Comola, Margherita and Prina, Silvia, Treatment Effect Accounting for Network Changes: Evidence from a Randomized Intervention (November 23, 2015). Available at SSRN: https://ssrn.com/abstract=2250748 or http://dx.doi.org/10.2139/ssrn.2250748

Margherita Comola (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

Silvia Prina

Case Western Reserve University - Weatherhead School of Management - Department of Economics ( email )

Cleveland, OH 44106
United States

HOME PAGE: http://faculty.weatherhead.case.edu/prina/

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