Instrumental variables estimation of the average treatment effect in the correlated random coefficient model
Modelling and Evaluating Treatment Effects in Econometrics
ISBN: 978-0-7623-1380-8, eISBN: 978-1-84950-523-9
Publication date: 21 February 2008
Abstract
I propose a general framework for instrumental variables estimation of the average treatment effect in the correlated random coefficient model, focusing on the case where the treatment variable has some discreteness. The approach involves adding a particular function of the exogenous variables to a linear model containing interactions in observables, and then using instrumental variables for the endogenous explanatory variable. I show how the general approach applies to binary and Tobit treatment variables, including the case of multiple treatments.
Citation
Wooldridge, J.M. (2008), "Instrumental variables estimation of the average treatment effect in the correlated random coefficient model", Fomby, T., Carter Hill, R., Millimet, D.L., Smith, J.A. and Vytlacil, E.J. (Ed.) Modelling and Evaluating Treatment Effects in Econometrics (Advances in Econometrics, Vol. 21), Emerald Group Publishing Limited, Leeds, pp. 93-116. https://doi.org/10.1016/S0731-9053(07)00004-7
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited