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Estimating average partial effects under conditional moment independence assumptions

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  • Jeffrey M. Wooldridge

Abstract

I show how to identify and estimate the average partial effect of explanatory variables in a model where unobserved heterogeneity interacts with the explanatory variables and may be unconditionally correlated with the explanatory variables. To identify the populationaveragedeffects, I use extensions of ignorability assumptions that are used for estimating linear models with additive heterogeneity and forestimating average treatment effects. New stimators are obtained for estimating the unconditional average partial effect as well as the average partial effect conditional on functions of observed covariates.

Suggested Citation

  • Jeffrey M. Wooldridge, 2004. "Estimating average partial effects under conditional moment independence assumptions," CeMMAP working papers 03/04, Institute for Fiscal Studies.
    • Handle: RePEc:azt:cemmap:03/04
    DOI: 10.1920/wp.cem.2004.0304
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    6. Asian Development Bank Institute, 2017. "Asian Economic Integration Report 2016," Working Papers id:11730, eSocialSciences.
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    9. W K Newey & S Stouli, 2022. "Heterogeneous coefficients, control variables and identification of multiple treatment effects [Multivalued treatments and decomposition analysis: An application to the WIA program]," Biometrika, Biometrika Trust, vol. 109(3), pages 865-872.
    10. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    11. Stephan O. Hornig & Horst Rottmann & Rüdiger Wapler, 2009. "Information Asymmetry, Education Signals and the Case of Ethnic and Native Germans," CESifo Working Paper Series 2683, CESifo.
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    13. Flossmann Anton L. & Pohlmeier Winfried, 2006. "Causal Returns to Education: A Survey on Empirical Evidence for Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(1), pages 6-23, February.
    14. Mendez, Samara & Peacock, Jacob Robert & Butner, Matt, 2020. "Impact of Corporate Commitments to Source Cage-Free Eggs on Layer Hen Housing - Preregistration," OSF Preprints hkrsm_v1, Center for Open Science.
    15. Francis J. DiTraglia & Camilo Garcia-Jimeno & Rossa O'Keeffe-O'Donovan & Alejandro Sanchez-Becerra, 2020. "Identifying Causal Effects in Experiments with Spillovers and Non-compliance," Papers 2011.07051, arXiv.org, revised Jan 2023.
    16. Destefanis, Sergio & Rehman, Naqeeb Ur, 2023. "Investment, innovation activities and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 474-490.
    17. Rainer Winkelmann, 2023. "Neglected heterogeneity, Simpson’s paradox, and the anatomy of least squares," ECON - Working Papers 426, Department of Economics - University of Zurich, revised Jul 2023.
    18. Dlugosz, Stephan, 2011. "Give missings a chance: Combined stochastic and rule-based approach to improve regression models with mismeasured monotonic covariates without side information," ZEW Discussion Papers 11-013, ZEW - Leibniz Centre for European Economic Research.

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