Unnatural Experiments? Estimating the Incidence of Endogenous Policies
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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Volume (Year): 110 (2000)
Issue (Month): 467 (November)
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- 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.
- Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
- 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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