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Local Instrumental Variables

Open access
Heckman, James, Vytlacil, Edward·2000·National Bureau of Economic Research

Abstract

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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Metadata

Authors
Heckman, J., & Vytlacil, E.
Venue
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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CoChat. (2026). Citation check: Local Instrumental Variables. https://app.cochat.ai/papers/10.3386/t0252
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Heckman, J., & Vytlacil, E. (2000). Local Instrumental Variables. National Bureau of Economic Research. https://doi.org/10.3386/t0252

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