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August 28, 2026Manufacturing & Service Operations ManagementOpen Access

Heterogeneous Treatment Effects in Panel Data: Insights into the Healthy Incentives Program

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Authors

RLRetsef LeviEPElisabeth PaulsonGPGeorgia Perakis

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Overview

Panel data analysis uncovers regional variations in food subsidy utilization across Massachusetts, highlighting targeted vendor allocation strategies.

Key Points

  • To estimate the heterogeneous impacts of adding new food vendors on program utilization in the Massachusetts Healthy Incentives Program using panel causal inference.
  • Formulated the panel clustering estimator (PaCE), which clusters units with similar treatment effects using a regression tree and exploits low-rank panel structure for estimation.
  • Established mathematical convergence guarantees and evaluated estimator performance using semisynthetic numerical experiments against existing panel estimators.
  • Applied PaCE to empirical panel records from the Massachusetts Healthy Incentives Program across geographic zip codes.
  • Theoretical results proved the asymptotic convergence of PaCE estimates to true treatment effects.
  • Semisynthetic simulations demonstrated superior accuracy over existing panel benchmarks for average and heterogeneous effects using compact regression trees of 40 or fewer leaves.
  • Empirical evaluation uncovered marked regional heterogeneity in how vendor additions alter program utilization across Massachusetts zip codes.

Cite This Study

Levi et al. (2026) studied this question.

synapsesocial.com/papers/6a914599d15324a1df3a8ddchttps://doi.org/10.1287/msom.2025.0522
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