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cemmap Working Papers
July 2002 CWP15/02
Article
Instrumental variables, local instrumental variables and control functions
Type: cemmap Working Papers
Authors: Jean-Pierre Florens, James Heckman, Costas Meghir and Edward Vytlacil
ISSN: 1753-9196
Volume, issue, pages: 40 pp.
Now published in: Econometrica [Details]

We consider the identification of the average treatment effect in models with continuous endogenous variables whose impact is heterogeneous. We derive a testable restriction that allows us to assess the degree of unobserved heterogeneity. Our analysis uses assumptions relating to the Local Instrumental Variables (LIV) approach and the control function approach.

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