scholarly journals A Bracketing Relationship between Difference-in-Differences and Lagged-Dependent-Variable Adjustment

2019 ◽  
Vol 27 (4) ◽  
pp. 605-615 ◽  
Author(s):  
Peng Ding ◽  
Fan Li
Keyword(s):  
Linear Models ◽  
Nonparametric Model ◽  
True Positive ◽  
Difference In Differences ◽  
Inverse Probability ◽  
Model Free ◽  
Lagged Dependent Variable ◽  
The Difference ◽  
Positive Effect ◽  
Theoretical Results

Difference-in-differences is a widely used evaluation strategy that draws causal inference from observational panel data. Its causal identification relies on the assumption of parallel trends, which is scale-dependent and may be questionable in some applications. A common alternative is a regression model that adjusts for the lagged dependent variable, which rests on the assumption of ignorability conditional on past outcomes. In the context of linear models, Angrist and Pischke (2009) show that the difference-in-differences and lagged-dependent-variable regression estimates have a bracketing relationship. Namely, for a true positive effect, if ignorability is correct, then mistakenly assuming parallel trends will overestimate the effect; in contrast, if the parallel trends assumption is correct, then mistakenly assuming ignorability will underestimate the effect. We show that the same bracketing relationship holds in general nonparametric (model-free) settings. We also extend the result to semiparametric estimation based on inverse probability weighting. We provide three examples to illustrate the theoretical results with replication files in Ding and Li (2019).

scholarly journals PENGARUH PEMERIKSAAN PAJAK TERHADAP KEPATUHAN WAJIB PAJAK BADAN DI INDONESIA

2019 ◽  
Vol 1 (1) ◽  
pp. 21
Author(s):  
Arif Nugrahanto ◽  
Soupani Andri Nasution
Keyword(s):  
Interaction Coefficient ◽  
P Value ◽  
Difference In Differences ◽  
Audit Risk ◽  
Dummy Variable ◽  
Directorate General ◽  
Negative Effect ◽  
Independent Variable ◽  
The Difference ◽  
Positive Effect

Several studies related to the effect of audits on taxpayer compliance provide different conclusions. Bergman and Nevarez (2006) find the fact that tax audits negatively affect compliance. In contrast, Gemmel and Ratto (2012) concluded that the audit had a negative effect on the group of taxpayers who obeyed, and at the same time had a positive effect on the group of taxpayers who did not comply. Given the different conclusions, the researcher is interested in testing in the Indonesian context by using the SIDJP data from the Directorate General of Tax for the period 2009-2013.The difference-in-differences approach model implemented in this study adopts Norman Gemmell and Marissa Ratto (2012). The dependent variable is income tax while the independent variable is the dummy variable for group, time and type of audits. Regression results show that the interaction coefficient between the dummy group variable and the time dummy variable which is the difference-in-differences coefficient, has a p-value that is statistically insignificant to reject null hypothesis. It tells that there is no difference in the level of compliance between the audited (corporate) taxpayer and non-audited (corporate) taxpayers. No impact on the level of compliance of taxpayers may come from several reasons, including the small coverage of the tax audits, the existence of the bomb crater effect, and the results of the type of updating audit risk.

The Effect of Audit Activity on Tax Declaration

2017 ◽  
Vol 46 (1) ◽  
pp. 29-57 ◽  
Author(s):  
Elena D’Agosto ◽  
Marco Manzo ◽  
Stefano Pisani ◽  
Filippo Maria D’Arcangelo
Keyword(s):  
Difference In Differences ◽  
Estimation Strategy ◽  
Self Employment ◽  
Reporting Behaviors ◽  
The Difference ◽  
Audit Activity ◽  
Positive Effect ◽  
Empirical Contribution

This article provides an empirical contribution to deterrence analysis by evaluating the effect of tax audits on compliance taxpayer behaviors over the 2004 to 2009 period. We use two unique databases: the Tax Return Register (Anagrafe Tributaria) and Italian Revenue Agency (IRA) audits data, with a focus on self-employment and sole proprietorships. The difference-in-differences approach has been applied as estimation strategy to evaluate the effect of three IRA audit policies: on-site audit (i.e., soft audit), desk audit (i.e., deep audit), and a combination of on-site and desk audit activities. Our results show an overall positive effect of tax audits in terms of deterrence. In particular, the contemporaneous presence of soft and deep audits has the greatest effect on compliance reporting behaviors. Moreover, on-site audits show greater effects compared to desk audit activities. Reasons can be found in different purposes for which various policies are designed.

scholarly journals China’s Carbon Emissions and Trading Pilot, Political Connection, and Innovation Input of Publicly Listed Private Firms

2020 ◽  
Vol 17 (17) ◽  
pp. 6084
Author(s):  
Wei Liu ◽  
Chunquan Yu ◽  
Shixiong Cheng ◽  
Jingyi Xu ◽  
Yuzhao Wu
Keyword(s):  
Carbon Emissions ◽  
Natural Experiment ◽  
Moderating Effect ◽  
Private Firms ◽  
Political Connection ◽  
Difference In Differences ◽  
The Difference ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Taking China’s carbon emissions and trading pilot (CCETP) as a quasi-natural experiment, this paper examines the impact of CCETP on publicly listed private firms’ innovation input and the moderating effect of the firms’ political connection based on the difference-in-differences model. The results show that CCETP has a significantly positive effect on the innovation input of Chinese publicly listed private firms. Moreover, the political connection of executives exhibits a positive moderating effect on CCETP’s impact on innovation input. Meanwhile, the effect is more significant in regions with high environmental protection investment and large publicly listed private firms. The conclusions could provide some policy enlightenment for China’s carbon market, as well as a rational adjustment of the relationship between political connection and innovation input of publicly listed private firms in the future.

scholarly journals Impact of Strengthening Internal Audit’s Roles towards State Budget Loss

JEJAK ◽  
2021 ◽  
Vol 14 (2) ◽  
pp. 345-363
Author(s):  
Nurul Qomaryati ◽  
Yohanna M.L. Gultom
Keyword(s):  
Quality Assurance ◽  
Capital Expenditure ◽  
Internal Audit ◽  
Budget Process ◽  
Difference In Differences ◽  
State Budget ◽  
Objective Quality ◽  
The Difference ◽  
Positive Effect

This research evaluates the effect of strengthening government internal audit’s (APIP) roles on reducing state budget loss in Indonesia. Since 2014, the role of internal audit as a provider of objective quality assurance is strengthened by adding comprehensive consulting activities that are inherent in each cycle of state budget process to make sure that there are no irregularities on managing the stage budget. By using the difference-in-differences (DID) approach, this study analyzes state budget loss data obtained from the Audit Board of Republic of Indonesia (BPK) in 492 cities/districts during 2009-2018. The results show that strengthening internal audit’s roles decreased state budget losses in the regions that have a relatively high capital expenditure by 0.435% and it is significant at 1% level. This finding shows the positive effect of adding a consulting role to government internal audit on reducing the state budget losses in Indonesia.

Evaluation of the impact of public investment programs on social and economic performance of territories

2019 ◽  
pp. 109-123
Author(s):  
I. E. Limonov ◽  
M. V. Nesena
Keyword(s):  
Bayesian Modeling ◽  
Positive Impact ◽  
Public Investment ◽  
Difference In Differences ◽  
The Public ◽  
Export Activity ◽  
Regional Investment ◽  
The Difference ◽  
The Impact ◽  
Development Institution

The purpose of this study is to evaluate the impact of public investment programs on the socio-economic development of territories. As a case, the federal target programs for the development of regions and investment programs of the financial development institution — Vnesheconombank, designed to solve the problems of regional development are considered. The impact of the public interventions were evaluated by the “difference in differences” method using Bayesian modeling. The results of the evaluation suggest the positive impact of federal target programs on the total factor productivity of regions and on innovation; and that regional investment programs of Vnesheconombank are improving the export activity. All of the investments considered are likely to have contributed to the reduction of unemployment, but their implementation has been accompanied by an increase in social inequality.

P-Removal in Completely Mixed Systems

1985 ◽  
Vol 17 (11-12) ◽  
pp. 325-326 ◽  
Author(s):  
H J. G. W. Donker ◽  
P. Opic ◽  
H. P. de Vries
Keyword(s):  
Mixed System ◽  
Domestic Waste ◽  
Recirculation Flow ◽  
Start Up ◽  
Significant Difference ◽  
Aerobic Reactor ◽  
The Difference ◽  
Positive Effect ◽  
Mixed Systems ◽  
P Removal

Ca. 60 % of the Dutch activated sludge plants consist of completely mixed systems, experiments have been carried out in completely mixed pilot plants to study the biological P-removal. The research was carried out in two pilot plants. The pilot plants consisted of: anaerobic reactor, anoxic reactor, aerobic reactor and a clarifier. All the reactors were completely mixed. Both plants were fed with settled domestic waste water at a sludge loading of 400 and 250 g COD/kg sludge.day respectively. The results are given below:sludge loading (g COD/kg sludge.day)400400250ratio Anaerobic : Anoxic : Aerobic1: 1:2,71:1:4,11:1:2,7P-removal (%)802875N-removal (%)505065COD-removal (%)858585 It has been shown that there is no significant difference between the results at the two different sludge loadings. Remarkable is the difference between the ratio 1:1:2,7 in combination with the internal recirculation flow anoxic-anaerobic of 160 % and the ratio 1:1:4,1 with a recirculation flow of 30 %. During the start-up at a sludge loading of 250 g COD/kg sludge.day and an internal recirculation flow of 30 %, bulking sludge developed almost immediately. The Premoval was completely disturbed. Increasing the internal recirculation flow to 160% had a positive effect on settling properties and P-removal. This investigation has pointed out that a completely mixed system is suitable for biological P-removal, without negatively affecting the nitrification. Important factors in the process are the ratio anaerobic:anoxic:aerobic and the recirculation flows.

scholarly journals The Impact of B Corp Certification on Growth

2021 ◽  
Vol 13 (13) ◽  
pp. 7191
Author(s):  
Valerie Paelman ◽  
Philippe Van Cauwenberge ◽  
Heidi Vander Bauwhede
Keyword(s):  
Regression Analysis ◽  
Propensity Score ◽  
Panel Regression ◽  
Medium Term ◽  
Difference In Differences ◽  
Dual Purpose ◽  
Full Effect ◽  
The Impact ◽  
Positive Effect ◽  
Over Time

We empirically test whether B Corp certification affects the short- and medium-term growth rates of sustainable enterprises. These businesses are growing in popularity and prevalence but, due to their hybrid nature, often suffer from external credibility issues and competing internal logics. Because of the rigorous and time-involving audit procedure, B Corp certification potentially sends a credible signal about the sustainable nature of the enterprise to its stakeholders. In addition, the B Corp label could help to straighten out internal tensions and align the company towards its dual purpose. Hence, B Corp certification could contribute to company success. We observe 129 firms that were certified between 2013 and 2018 over a period between six years prior and five years post-certification. Using propensity score matching, we identify 129 non-certified matching companies. On this sample, we conduct a difference-in-differences panel regression analysis to investigate the effect of certification. Our dataset allows us to study how the effects of B Corp certification evolve over time, which was previously untested. Our study documents a positive effect of B Corp certification on turnover growth and also that this effect increases with the time since certification, implying that certification requires some time for its full effect to become apparent.

scholarly journals Evaluating the Impact of Floods on Housing Price Using a Spatial Matching Difference-In-Differences (SM-DID) Approach

2021 ◽  
Vol 13 (2) ◽  
pp. 804
Author(s):  
Jean Dubé ◽  
Maha AbdelHalim ◽  
Nicolas Devaux
Keyword(s):  
Housing Price ◽  
Hedonic Pricing ◽  
Environmental Amenities ◽  
Sale Price ◽  
Difference In Differences ◽  
Hedonic Pricing Model ◽  
The Difference ◽  
And Control ◽  
The Impact ◽  
The City

Many applications have relied on the hedonic pricing model (HPM) to measure the willingness-to-pay (WTP) for urban externalities and natural disasters. The classic HPM regresses housing price on a complete list of attributes/characteristics that include spatial or environmental amenities (or disamenities), such as floods, to retrieve the gradients of the market (marginal) WTP for such externalities. The aim of this paper is to propose an innovative methodological framework that extends the causal relations based on a spatial matching difference-in-differences (SM-DID) estimator, and which attempts to calculate the difference between sale price for similar goods within “treated” and “control” groups. To demonstrate the potential of the proposed spatial matching method, the researchers present an empirical investigation based on the case of a flood event recorded in the city of Laval (Québec, Canada) in 1998, using information on transactions occurring between 1995 and 2001. The research results show that the impact of flooding brings a negative premium on the housing price of about 20,000$ Canadian (CAN).

Study on Association between Height, Weight, Iodine Supplementation and Thyroid Volume

2021 ◽  
pp. 1-25
Author(s):  
Lanchun Liu ◽  
Lixiang Liu ◽  
Ming Li ◽  
Yang Du ◽  
Peng Liu ◽  
...  
Keyword(s):  
Iodine Deficiency ◽  
Linear Models ◽  
Thyroid Volume ◽  
Salt Iodization ◽  
Iodine Supplementation ◽  
Random Pairing ◽  
Level Data ◽  
The Mean ◽  
Salt Iodine ◽  
The Difference

Abstract The policy of Universal Salt Iodization (USI) could reduce population’s thyroid volume (TVOL) in iodine deficiency areas. Conversely, the improved growth and developmental status of children might increase the TVOL accordingly. Whether the decreased TVOL by USI conceals the increase effect of height and weight on TVOL is unclear. The aim of this study was to analyse the association between height, weight, iodine supplementation and TVOL. Five national Iodine Deficiency Disorder surveys were matched into four pairs according to the purpose of analysis. County-level data of both detected by paired surveys were incorporated, 1: 1 random pairing method was used to match counties or individuals. The difference of TVOL between different height, weight, different iodine supplementation measures groups and the association between TVOL and them were studied. The mean height and weight of children aged 8-10 years increased from 129.9cm and 26.9kg in 2002 to 136.2cm and 32.1kg in 2019; while the median TVOL decreased from 3.10ml to 2.61ml. Iodine supplementation measures can affect TVOL; after exclude iodine effects, the median TVOL was increased with the height and weight. On the other side, after excluding the influence of height and weight, the median TVOL remained decreased. Only age, weight and salt iodine were significant associated with TVOL in multiple linear models. Development of height and weight in children is the evidence of improved nutrition. The decreased TVOL caused by iodized salt measures conceals the increase effect of height and weight on TVOL. Age, weight, and salt iodine affect TVOL significantly.

scholarly journals Institutional Reforms and Their Impact on Economic Growth and Investment in Developing Countries

2021 ◽  
Vol 13 (9) ◽  
pp. 4941
Author(s):  
Jin Zhao ◽  
Ghulam Rasool Madni ◽  
Muhammad Awais Anwar ◽  
Syeda Masooma Zahra
Keyword(s):  
Developing Countries ◽  
Economic Prosperity ◽  
Institutional Reforms ◽  
Difference In Differences ◽  
Human Interactions ◽  
Political Reforms ◽  
Vast Literature ◽  
Treatment Analysis ◽  
The Difference ◽  
The Impact

It is widely accepted that the economic and social system may be more efficient by reforming institutions. Institutional reforms are attempts to change the rules affecting human interactions and these reforms are fundamental for development and economic prosperity. The reforms can be divided into two categories; political and economic institutional reforms. It is need of the hour to determine the category of reform that is more suitable for developing countries. Moreover, a vast literature describes the impact of institutional reforms but little focused on exploring their impacts on macroeconomic activities. So, this study is an effort to determine the impact of institutional reforms on macroeconomic variables by considering the panel data of 122 developing countries covering the time span from 1996 to 2019. The study applied treatment analysis using the difference-in-differences technique to gauge the effects of reforms. Besides, it will be interesting to know the causes triggering the institutional reforms in developing countries. The findings of the study reveal that economic reforms are more important as compared with political reforms to grow the economies. The countries focusing on political reforms are not able to overcome the economic crisis. Moreover, both types of reforms do not cause each other in these countries.

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