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Unnatural Experiments? Estimating the Incidence of Endogenous Policies

  • Besley, Timothy
  • Case, Anne

There are numerous empirical studies that exploit variation in policies over space and time in the U.S. federal system. If state policy making is purposeful action responsive to economic and political conditions within the state then it is necessary to identify and control for the forces that lead to these policy changes. This paper investigates the implications of policy endogeneity for a specific policy context--workers' compensation benefits. We contrast different methods of estimation and their pros and cons in this context.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 110 (2000)
Issue (Month): 467 (November)
Pages: F672-94

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Handle: RePEc:ecj:econjl:v:110:y:2000:i:467:p:f672-94
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  1. Besley, Timothy & Case, Anne, 1995. "Incumbent Behavior: Vote-Seeking, Tax-Setting, and Yardstick Competition," American Economic Review, American Economic Association, vol. 85(1), pages 25-45, March.
  2. John Piggott & John Whalley, 1994. "The Tax Unit and Household Production," NBER Working Papers 4820, National Bureau of Economic Research, Inc.
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