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6 changes: 3 additions & 3 deletions docs/tutorials/14_continuous_did.ipynb
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"source": [
"## 2. Data Setup\n",
"\n",
"We generate a balanced panel of workers. Some are assigned to a training cohort (treated in period 2), while 30% are never treated. Each trained worker receives a dose (hours) drawn from a log-normal distribution. The true treatment effect is **ATT(d) = 1 + 2d** — each hour of training adds \\$2 to earnings, plus a base effect of \\$1 for any training at all."
"We generate a balanced panel of workers. Some are assigned to a training cohort (treated in period 2), while 30% are never treated. Each trained worker receives a dose (hours) drawn from a log-normal distribution. The true treatment effect is **ATT(d) = 1 + 2d** — each hour of training adds \\\\$2 to earnings, plus a base effect of \\\\$1 for any training at all."
]
},
{
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"source": [
"### Interpreting the dose-response curves\n",
"\n",
"- **Left panel (ATT):** The total effect of training rises roughly linearly with dose, closely tracking the true curve (dashed). A worker with 3 hours of training gains about \\$7 in earnings; a worker with 5 hours gains about \\$11.\n",
"- **Right panel (ACRT):** The marginal return to one additional hour is approximately constant at \\$2, matching the true DGP. The confidence band is wider at extreme doses where fewer workers are observed.\n",
"- **Left panel (ATT):** The total effect of training rises roughly linearly with dose, closely tracking the true curve (dashed). A worker with 3 hours of training gains about \\\\$7 in earnings; a worker with 5 hours gains about \\\\$11.\n",
"- **Right panel (ACRT):** The marginal return to one additional hour is approximately constant at \\\\$2, matching the true DGP. The confidence band is wider at extreme doses where fewer workers are observed.\n",
"\n",
"These curves require the **strong parallel trends** assumption. Under standard PT only, the overall binarized effect is identified — this is ATT_loc (the local average across dose groups). The dose-response curve and ACRT_glob are not identified under standard PT because they involve cross-dose comparisons and counterfactual dose-response derivatives. The ATT_glob reported by the estimator is mechanically the binarized DiD: under standard PT it equals ATT_loc, while under strong PT it additionally equals the global average ATT_glob."
]
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