Generalized additive models for location, scale and shape for program evaluation: A guide to practice

06/25/2018

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by   Maike Hohberg, et al.

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This paper introduces generalized additive models for location, scale and shape (GAMLSS) as a modeling framework for analyzing treatment effects beyond the mean. By relating each parameter of the response distribution to explanatory variables, GAMLSS model the treatment effect on the whole conditional distribution. Additionally, any nonnormal outcome and nonlinear effects of explanatory variables can be incorporated. We elaborate on the combination of GAMLSS with program evaluation methods in economics and provide a practical guide to the usage of GAMLSS by reanalyzing data from the Progresa program. Contrary to expectations, no significant effects of a cash transfer on the conditional inequality level between treatment and control group are found.