Dynamic Treatment Assignment

We discuss estimation of treatment effects when the timing of treatment is the outcome of a stochastic process. We show that the duration framework in discrete time provides a fertile ground for effect evaluations. We suggest easy-to-use nonparametric survival function matching estimators that can be used to estimate the time profile of the treatment.We study the small-sample properties of the proposed estimators and apply one of them to evaluate the effects of an employment subsidy program. We find that the longerrun program effects are positive. The estimated time profile suggests locking-in effects while participating in the program and a significant upward jump in the employment hazard on program completion.