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Alternative approaches to evaluation in empirical microeconomics

  • Richard Blundell

    ()

    (Institute for Fiscal Studies and IFS and UCL)

  • Monica Costa Dias

    ()

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

Four alternative but related approaches to empirical evaluation of policy interventions are studied: social experiments, natural experiments, matching methods, and instrumental variables. In each case the necessary assumptions and the data requirements are considered for estimation of a number of key parameters of interest. These key parameters include the average treatment effect, the treatment of the treated and the local average treatment effect. Some issues of implementation and interpretation are discussed drawing on the labour market programme evaluation literature.

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File URL: http://cemmap.ifs.org.uk/wps/cwp1002.pdf
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Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP10/02.

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Length: 39 pp.
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:ifs:cemmap:10/02
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