Potential pilot problems: Treatment spillovers in financial regulatory experiments

• Main Authors: BOEHMER, Ekkehart, JONES, Charles, ZHANG, Xiaoyan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2020
• Subjects: Inference; Short sales; Short interest; Tick test; Regulation SHO; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6229; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7228/viewcontent/Potential_pilot_problems_pv.pdf
• Institution: Singapore Management University

In analyzing regulatory experiments, a fundamental assumption is that the control group is unaffected. However, in many settings, this assumption may not hold. Generally, the total effect of a regulatory change consists of direct and indirect effects, but the standard difference-in-difference approa...