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.
Find the working paper here.
Authors
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
Research Associate University of Chicago
James is a Research Associate of the IFS and the Henry Schultz Distinguished Service Professor of Economics at the University of Chicago.
NYU
Jean-Pierre Florens
Journal article details
- Publisher
- Econometrica
- Issue
- September 2008
Suggested citation
Florens, J et al. (2008). 'Instrumental variables, local instrumental variables and control functions' (2008)
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