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Selection Bias Adjustment in Treatment-Effect Models as a Method of Aggregation

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  • Robert A. Moffitt

Abstract

The aim of this note is to interpret estimation of the conventional treatment-effect selection-bias model in econometrics as a method of aggregation and to draw the implications of this interpretation. In addition, the paper notes the connection of this interpretation with an older style of analysis using grouped data and illustrates the aggregation analogy with examples from the literature. The estimation technique used to illustrate the points is the method of instrumental variables.

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File URL: http://www.nber.org/papers/t0187.pdf
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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Technical Working Papers with number 0187.

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Date of creation: May 1996
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Publication status: published as 1995 Proceedings of the American Statistical Association, pp. 234-238, (199 5).
Handle: RePEc:nbr:nberte:0187

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  1. Bjorklund, Anders & Moffitt, Robert, 1987. "The Estimation of Wage Gains and Welfare Gains in Self-selection," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 42-49, February.
  2. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
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Cited by:
  1. DiPrete, Thomas A. & Gangl, Markus, 2004. "Assessing bias in the estimation of causal effects: Rosenbaum bounds on matching estimators and instrumental variables estimation with imperfect instruments," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2004-101, Social Science Research Center Berlin (WZB).
  2. Theodore Joyce, 1997. "Impact of Augmented Prenatal Care on Birth Outcomes of Medicaid Recipients in New York City," NBER Working Papers 6029, National Bureau of Economic Research, Inc.

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