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Partial Distributional Policy Effects

  • Rothe, Christoph

    ()

    (Columbia University)

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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6076.

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Length: 41 pages
Date of creation: Oct 2011
Date of revision:
Publication status: published in: Econometrica, 2012, 80 (5), 2269-2301
Handle: RePEc:iza:izadps:dp6076
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  25. Joseph G. Altonji & Prashant Bharadwaj & Fabian Lange, 2008. "Changes in the Characteristics of American Youth: Implications for Adult Outcomes," NBER Working Papers 13883, National Bureau of Economic Research, Inc.
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  27. Rothe, Christoph, 2010. "Nonparametric estimation of distributional policy effects," Journal of Econometrics, Elsevier, vol. 155(1), pages 56-70, March.
  28. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
  29. Jörg Stoye, 2010. "Partial identification of spread parameters," Quantitative Economics, Econometric Society, vol. 1(2), pages 323-357, November.
  30. Nikolay Nenovsky & S. Statev, 2006. "Introduction," Post-Print halshs-00260898, HAL.
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