IDEAS home Printed from https://ideas.repec.org/h/eee/ecochp/6b-71.html
   My bibliography  Save this book chapter

Econometric Evaluation of Social Programs, Part II: Using the Marginal Treatment Effect to Organize Alternative Econometric Estimators to Evaluate Social Programs, and to Forecast their Effects in New Environments

In: Handbook of Econometrics

Author

Listed:
  • James J. Heckman
  • Vytlacil, Edward J.

Abstract

This chapter uses the marginal treatment effect (MTE) to unify and organize the econometric literature on the evaluation of social programs. The marginal treatment effect is a choice-theoretic parameter that can be interpreted as a willingness to pay parameter for persons at a margin of indifference between participating in an activity or not. All of the conventional treatment parameters as well as the more economically motivated treatment effects can be generated from a baseline marginal treatment effect. All of the estimation methods used in the applied evaluation literature, such as matching, instrumental variables, regression discontinuity methods, selection and control function methods, make assumptions about the marginal treatment effect which we exposit. Models for multiple outcomes are developed. Empirical examples of the leading methods are presented. Methods are presented for bounding treatment effects in partially identified models, when the marginal treatment effect is known only over a limited support. We show how to use the marginal treatment in econometric cost benefit analysis, in defining limits of policy experiments, in constructing the average marginal treatment effect, and in forecasting the effects of programs in new environments.

Suggested Citation

  • James J. Heckman & Vytlacil, Edward J., 2007. "Econometric Evaluation of Social Programs, Part II: Using the Marginal Treatment Effect to Organize Alternative Econometric Estimators to Evaluate Social Programs, and to Forecast their Effects in New," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 71 Elsevier.
  • Handle: RePEc:eee:ecochp:6b-71
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/B7GX7-4R9GYJS-4/2/fdbc969921f9c267cb5e59fa6a3b88cc
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecochp:6b-71. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.