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Simple Estimators for Treatment Parameters in a Latent Variable Framework

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Author Info
Heckman, J J
Tobias, Justin
Vytlacil, E

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Abstract

This note derives simply computed closed-form expressions for the Average Treatment Effect (ATE), the effect of Treatment on the Treated (TT), the Local Average Treatment Effect (LATE) and Marginal Treatment Effect (MTE) in a latent variable framework for both normal and non-normal models. Asymptotic standard errors for versions of these parameters which average over observed characteristics are also obtained. The performances of the derived estimators are also evaluated in several Monte Carlo experiments under correct and misspecification.

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Publisher Info
Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12012.

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Date of creation: 27 Aug 2004
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Publication status: Published in Review of Economics and Statistics, 2003, Vol. 85, No. 3, pp. 748-755.
Handle: RePEc:isu:genres:12012

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  1. James J. Heckman & Sergio Urzua & Edward J. Vytlacil, 2006. "Understanding Instrumental Variables in Models with Essential Heterogeneity," NBER Working Papers 12574, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Mark Dusheiko & Hugh Gravelle & Rowena Jacobs, 2004. "The effect of practice budgets on patient waiting times: allowing for selection bias," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 941-958. [Downloadable!]
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