Instrumental variables, local instrumental variables and control functions

Published on 5 July 2002

This Working Paper is an update of Identification of treatment effects using control functions in models with continuous, endogenous treatment and heterogeneous effects

We consider the identification of the average treatment effect in models with continuous endogenous variables whose impact is heterogeneous.

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.

Authors

Costas Meghir
Costas Meghir

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.

James Heckman
James Heckman

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.

Person graphic

Jean-Pierre Florens

Working Paper details

DOI
10.1920/wp.cem.2002.1502
Publisher
IFS

Suggested citation

Florens, J et al. (2002). Instrumental variables, local instrumental variables and control functions. London: IFS. Available at: https://ifs.org.uk/publications/instrumental-variables-local-instrumental-variables-and-control-functions (accessed: 16 April 2024).

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