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Age-Period-Cohort analysis: A design-based approach
Affiliation:1. University of Nottingham, Nottingham, United Kingdom;2. University of California, Berkeley, United Kingdom;1. Basic Science Department, North China Institute of Aerospace Engineering, Hebei, LangFang 065000, China;2. College of Science, North China University of Science and Technology, Hebei, Tangshan 063009, China;3. Department of Chemistry, Ahar Branch, Islamic Azad University, Ahar, Iran;1. School of Economic, Political and Policy Sciences, University of Texas at Dallas, USA;2. Department of Political Science, SUNY-Cortland, USA
Abstract:This paper develops a design-based approach to identifying cohort effects in APC analyses. Cohort effects arise when one cohort is treated by a unique set of formative socialization experiences, which causes it to differ from other cohorts in relevant outcomes. APC analyses typically compare treated and untreated cohorts from a single population. Our approach introduces a second group—a control group, in which no unit is treated but that is otherwise similar to the first—and adapts difference-in-differences estimation to the APC framework. The approach yields two identification strategies, each based on transparent and testable assumptions. We illustrate how the method works and what is to be gained through three examples.
Keywords:Age-Period-Cohort analysis  Identification problem  Cohort effects  Control group  Difference-in-differences
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