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Dynamic policy analysis

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Author Info

  • Jaap Abbring

    (Institute for Fiscal Studies and Tinbergen Institute)

  • James Heckman

    (Institute for Fiscal Studies and University of Chicago)

Abstract

This chapter studies the microeconometric treatment-effect and structural approaches to dynamic policy evaluation. First, we discuss a reduced-form approach based on a sequential randomization or dynamic matching assumption that is popular in biostatistics. We then discuss two complementary approaches for treatments that are single stopping times and that allow for non- trivial dynamic selection on unobservables. The first builds on continuous-time duration and event-history models. The second extends the discrete-time dynamic discrete-choice literature.

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File URL: http://cemmap.ifs.org.uk/wps/cwp508.pdf
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Bibliographic Info

Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP05/08.

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Date of creation: Feb 2008
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Handle: RePEc:ifs:cemmap:05/08

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Cited by:
  1. James Heckman, 2008. "Econometric causality," CeMMAP working papers CWP01/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  2. Michael Lechner, 2006. "The Relation of Different Concepts of Causality in Econometrics," University of St. Gallen Department of Economics working paper series 2006 2006-15, Department of Economics, University of St. Gallen.

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