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Better LATE Than Nothing: Some Comments on Deaton (2009) and Heckman and Urzua (2009)

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Author Info
Guido W. Imbens
Abstract

Two recent papers, Deaton (2009), and Heckman and Urzua (2009), argue against what they see as an excessive and inappropriate use of experimental and quasi-experimental methods in empirical work in economics in the last decade. They specifically question the increased use of instrumental variables and natural experiments in labor economics, and of randomized experiments in development economics. In these comments I will make the case that this move towards shoring up the internal validity of estimates, and towards clarifying the description of the population these estimates are relevant for, has been important and beneficial in increasing the credibility of empirical work in economics. I also address some other concerns raised by the Deaton and Heckman-Urzua papers.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14896.

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Date of creation: Apr 2009
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Handle: RePEc:nbr:nberwo:14896

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C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - General
C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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  1. Stefanie Behncke, 2009. "How Does Retirement Affect Health?," University of St. Gallen Department of Economics working paper series 2009 2009-13, Department of Economics, University of St. Gallen. [Downloadable!]
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  2. Flores, Carlos A. & Flores-Lagunes, Alfonso, 2009. "Identification and Estimation of Causal Mechanisms and Net Effects of a Treatment under Unconfoundedness," IZA Discussion Papers 4237, Institute for the Study of Labor (IZA). [Downloadable!]
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