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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)

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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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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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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Heckman, James J., 2008. "Econometric Causality," IZA Discussion Papers 3425, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  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. [Downloadable!]
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