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arXiv · 2504.01140

Nonlinearity in Dynamic Causal Effects: Making the Bad into the Good, and the Good into the Great?

Toru Kitagawa·Weining Wang·Mengshan Xu
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Abstract

This paper was prepared as a comment on "Dynamic Causal Effects in a Nonlinear World: the Good, the Bad, and the Ugly" by Michal Koles\'{a}r and Mikkel Plagborg-M{\o}ller. We make three comments, including a novel contribution to the literature, showing how a reasonable economic interpretation can potentially be restored for average-effect estimators with negative weights.

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Toru Kitagawa, Weining Wang, Mengshan Xu. 2025-04-01. Nonlinearity in Dynamic Causal Effects: Making the Bad into the Good, and the Good into the Great?. https://arxiv.org/abs/2504.01140

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