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Dynamic policy analysis

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  • 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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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. Heckman, James J., 2008. "Econometric Causality," IZA Discussion Papers 3425, Institute for the Study of Labor (IZA).
  2. Heckman, James J. & Navarro, Salvador, 2007. "Dynamic discrete choice and dynamic treatment effects," Journal of Econometrics, Elsevier, vol. 136(2), pages 341-396, February.
  3. Mroz, T.; & Picone, G.;, 2011. "A Multiple State Duration Model with Endogenous Treatment," Health, Econometrics and Data Group (HEDG) Working Papers 11/19, HEDG, c/o Department of Economics, University of York.

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