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Structural Characterizations of Marginal Policy Effects

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  • Zhixin Wang
  • Yu Zhang
  • Zhengyu Zhang

Abstract

This paper investigates the structural interpretation of the marginal policy effect (MPE) within nonseparable models. We demonstrate that, for a smooth functional of the outcome distribution, the MPE equals its functional derivative evaluated at the outcome-conditioned weighted average structural derivative. This equivalence is definitional rather than identification-based. Building on this theoretical result, we propose an alternative identification strategy for the MPE that complements existing methods.

Suggested Citation

  • Zhixin Wang & Yu Zhang & Zhengyu Zhang, 2025. "Structural Characterizations of Marginal Policy Effects," Papers 2506.11694, arXiv.org.
  • Handle: RePEc:arx:papers:2506.11694
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    File URL: http://arxiv.org/pdf/2506.11694
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