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Four Parameters of Interest in the Evaluation of Social Programs

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Author Info
James Heckman () (Department of Economics, University of Chicago)
Justin L. Tobias () (Department of Economics, University of California-Irvine)
Edward Vytlacil () (Department of Economics, Stanford University)

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Abstract

This paper reviews four treatment parameters that have become commonly used in the program evaluation literature: the average treatment effect, the effect of treatment on the treated, the local average treatment effect, and the marginal treatment effect. We derive simply computed closed-form expressions for these treatment parameters in a latent variable framework with Gaussian error terms. These parameters can be estimated using nothing more than output from a standard two-step procedure. We also briefly describe recent work that seeks to go beyond mean effects and estimate the distributions associated with various outcome gains. The techniques presented in the paper are applied to estimate the return to some form of college education for various populations using data from the National Longitudinal Survey of Youth.

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Publisher Info
Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 68 (2001)
Issue (Month): 2 (October)
Pages: 210-223
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Handle: RePEc:sej:ancoec:v:68:2:y:2001:p:210-223

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  1. Francisco Henríquez & Alejandra Mizala & Andrea Repetto, 2009. "Effective Schools for Low Income Children: a Study of Chile’s Sociedad de Instrucción Primaria," Documentos de Trabajo 258, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  2. Joshua D. Angrist, 2003. "Treatment Effect Heterogeneity in Theory and Practice," NBER Working Papers 9708, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Tavneet Suri, 2009. "Selection and Comparative Advantage in Technology Adoption," NBER Working Papers 15346, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Juanna Schrøter Joensen & Helena Skyt Nielsen, 2006. "Is there a Causal Effect of High School Math on Labor Market Outcomes?," IZA Discussion Papers 2357, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. James J. Heckman & Salvador Navarro-Lozano, 2003. "Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models," NBER Working Papers 9497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Tavneet Suri, 2006. "Selection and Comparative Advantage in Technology Adoption," Working Papers 944, Economic Growth Center, Yale University. [Downloadable!]
  7. Justin L. Tobias, 2003. "The effects of cognitive ability and high school quality on college entry decisions: nonparametric estimation of parameters of interest," Applied Economics, Taylor and Francis Journals, vol. 35(2), pages 209-215, January. [Downloadable!] (restricted)
  8. Sebastian Edwards & I. Igal Magendzo, 2003. "Dollarization and economic performance: What do we really know?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 351-363. [Downloadable!]
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  9. Liu, Xiaowen & Yen, Steven T., 2009. "The Supplemental Nutrition Assistance Program and Nutrient Intakes," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49529, Agricultural and Applied Economics Association. [Downloadable!]
  10. Jaap Abbring & James Heckman, 2008. "Dynamic policy analysis," CeMMAP working papers CWP05/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
  11. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  12. Justin L. Tobias & Mingliang Li, 2003. "A finite-sample hierarchical analysis of wage variation across public high schools: evidence from the NLSY and high school and beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 315-336. [Downloadable!]
  13. Mark Duggan & Melissa Schettini Kearney, 2005. "The Impact of Child SSI Enrollment on Household Outcomes: Evidence from the Survey of Income and Program Participation," NBER Working Papers 11568, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. James J. Heckman & Salvador Navarro, 2005. "Dynamic Discrete Choice and Dynamic Treatment Effects," IZA Discussion Papers 1790, Institute for the Study of Labor (IZA). [Downloadable!]
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  15. Xinyu (Jason) Cao, 2009. "Disentangling the influence of neighborhood type and self-selection on driving behavior: an application of sample selection model," Transportation, Springer, vol. 36(2), pages 207-222, March. [Downloadable!] (restricted)
  16. Walters, Lurleen M. & Emerson, Robert D. & Iwai, Nobuyuki, 2008. "Proposed Immigration Policy Reform & Farm Labor Market Outcomes," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6285, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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