Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models
49 Pages Posted: 9 May 2003
There are 2 versions of this paper
Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models
Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models
Date Written: April 2003
Abstract
This paper investigates four topics. (1) It examines the different roles played by the propensity score (probability of selection) in matching, instrumental variable and control functions methods. (2) It contrasts the roles of exclusion restrictions in matching and selection models. (3) It characterizes the sensitivity of matching to the choice of conditioning variables and demonstrates the greater robustness of control function methods to misspecification of the conditioning variables. (4) It demonstrates the problem of choosing the conditioning variables in matching and the failure of conventional model selection criteria when candidate conditioning variables are not exogenous.
Keywords: Matching, Control Functions, Instrumental Variables, Discrete Choice, Identification
JEL Classification: C31
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Identification and Estimation of Local Average Treatment Effects
By Joshua D. Angrist and Guido W. Imbens
-
Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems
By David Card
-
By James J. Heckman, Lance Lochner, ...
-
Life Cycle Schooling and Dynamic Selection Bias: Models and Evidence for Five Cohorts
-
By James J. Heckman and Edward Vytlacil
-
Earnings, Schooling, and Ability Revisited
By David Card