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Local Instrumental Variables
Open accessAbstract
This paper unites the treatment effect literature and the latent variable literature.The economic questions answered by the commonly used treatment effect parameters are considered.We demonstrate how the marginal treatment effect parameter can be used in a latent variable framework to generate the average treatment effect, the effect of treatment on the treated and the local average treatment effect, thereby establishing a new relationship among these parameters.The method of local instrumental variables directly estimates the marginal treatment effect parameters, and thus can be used to estimate all of the conventional treatment effect parameters when the index condition holds and the parameters are identified.When they are not, the method of local instrumental variables can be used to produce bounds on the parameters with the width of the bounds depending on the width of the support for the index generating the choice of the observed potential outcome.
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Citations
Cited by
Understanding Instrumental Variables in Models with Essential Heterogeneity
Heckman, J. J., Urzua, S., & Vytlacil, E. (2006) · Review of Economics and Statistics · doi:10.1162/rest.88.3.389 · Cited by 874
Self-citationUsing matching, instrumental variables and control functions to estimate economic choice models
Heckman, J., & Navarro-Lozano, S. (2004) · Review of Economics and Statistics · doi:10.1162/003465304323023660 · Cited by 768
Self-citationEstimating Marginal Returns to Education
Carneiro, P., Heckman, J. J., & Vytlacil, E. J. (2011) · American Economic Review · doi:10.1257/aer.101.6.2754 · Cited by 612
Self-citation1. The Scientific Model of Causality
Heckman, J. J. (2005) · Sociological Methodology · doi:10.1111/j.0081-1750.2006.00164.x · Cited by 401
Self-citationNonparametric Estimation of Nonadditive Random Functions
Matzkin, R. L. (2003) · Econometrica · doi:10.1111/1468-0262.00452 · Cited by 386
Metadata
- Authors
- Heckman, J., & Vytlacil, E.
- Venue
- National Bureau of Economic Research
- Publisher
- National Bureau of Economic Research
- Published
- 2000-04
- OpenAlex
- W3125141861
- Cited by
- 195
- References
- 0
- Type
- report
- Language
- ja
- Open access
- green
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