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Partial Distributional Policy Effects

  • Christoph Rothe

In this paper, we propose a method to evaluate the effect of a counterfactual change in the unconditional distribution of a single covariate on the unconditional distribution of an outcome variable of interest. Both fixed and infinitesimal changes are considered. We show that such effects are point identified under general conditions if the covariate affected by the counterfactual change is continuously distributed, but are typically only partially identified if its distribution is discrete. For the latter case, we derive informative bounds making use of the available information. We also discuss estimation and inference.

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Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 80 (2012)
Issue (Month): 5 (09)
Pages: 2269-2301

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Handle: RePEc:ecm:emetrp:v:80:y:2012:i:5:p:2269-2301
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  1. Jörg Stoye, 2008. "More on confidence intervals for partially identified parameters," CeMMAP working papers CWP11/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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  18. repec:sae:ecolab:v:16:y:2006:i:2:p:1-2 is not listed on IDEAS
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  29. Rothe, Christoph, 2010. "Nonparametric estimation of distributional policy effects," Journal of Econometrics, Elsevier, vol. 155(1), pages 56-70, March.
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