Average Causal Response with Variable Treatment Intensity
AbstractIn evaluation research, an average causal effect is usually defined as the expected difference between the outcomes of the treated, and what these outcomes would have been in the absence of treatment. This definition of causal effects makes sense for binary treatments only. In this paper, we extend the definition of average causal effects to the case of variable treatments such as drug dosage, hours of exam preparation, cigarette smoking, and years of schooling. We show that given mild regularity assumptions, instrumental variables independence assumptions identify a weighted average of per-unit causal effects along the length of an appropriately defined causal response function. Conventional instrumental variables and Two-Stage Least Squares procedures can be interpreted as estimating the average causal response to a variable treatment.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0127.
Date of creation: Jun 1995
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Other versions of this item:
- Angrist, J.D. & Imbens, G.W., 1992. "Average causal response with variable treatment intensity," Discussion Paper 1992-34, Tilburg University, Center for Economic Research.
- Imbens, G. & Angrist, J.D., 1992. "Average Causal Response with Variable Treatment Intensity," Harvard Institute of Economic Research Working Papers 1611, Harvard - Institute of Economic Research.
- Angrist, J.D. & Imbens, G.W., 1992. "Average Causal Response with Variable Treatment Intensity," Papers 9234, Tilburg - Center for Economic Research.
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