IDEAS home Printed from https://ideas.repec.org/p/kse/dpaper/37.html
   My bibliography  Save this paper

Exogenous Treatment and Endogenous Factors: Vanishing of Omitted Variable Bias on the Interaction Term

Author

Listed:
  • Olena Nizalova

    (University of Kent, Kyiv School of Economics)

  • Irina Murtazashvili

    (Drexel Universit)

Abstract

Whether interested in the differential impact of a particular factor in various institutional settings or in the heterogeneous effect of policy or random experiment, the empirical researcher confronts a problem if the factor of interest is correlated with an omitted variable. This paper presents the circumstances under which it is possible to arrive at a consistent estimate of the mentioned effect. We find that if the source of heterogeneity and omitted variable are jointly independent of policy or treatment, then the OLS estimate on the interaction term between the treatment and endogenous factor turns out to be consistent.

Suggested Citation

  • Olena Nizalova & Irina Murtazashvili, 2011. "Exogenous Treatment and Endogenous Factors: Vanishing of Omitted Variable Bias on the Interaction Term," Discussion Papers 37, Kyiv School of Economics.
  • Handle: RePEc:kse:dpaper:37
    Note: Revised and resubmitted to the Journal of Econometric Methods
    as

    Download full text from publisher

    File URL: http://repec.kse.org.ua/pdf/KSE_dp37.pdf
    File Function: Revised version, June 2014
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Abhijit V. Banerjee & Shawn Cole & Esther Duflo & Leigh Linden, 2007. "Remedying Education: Evidence from Two Randomized Experiments in India," The Quarterly Journal of Economics, Oxford University Press, vol. 122(3), pages 1235-1264.
    2. Leora Friedberg, 2000. "The Labor Supply Effects of the Social Security Earnings Test," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 48-63, February.
    3. Sylvie Moulin & Michael Kremer & Paul Glewwe, 2009. "Many Children Left Behind? Textbooks and Test Scores in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 112-135, January.
    4. Blank, Rebecca M, 1991. "The Effects of Double-Blind versus Single-Blind Reviewing: Experimental Evidence from The American Economic Review," American Economic Review, American Economic Association, vol. 81(5), pages 1041-1067, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    2. Vegas, E & Ganimian, A. J., 2013. "Theory and Evidence on Teacher Policies in Developed and Developing Countries," Working Paper 104291, Harvard University OpenScholar.
    3. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    4. Jenny C. Aker & Christopher Ksoll & Travis J. Lybbert, 2012. "Can Mobile Phones Improve Learning? Evidence from a Field Experiment in Niger," American Economic Journal: Applied Economics, American Economic Association, vol. 4(4), pages 94-120, October.
    5. Glewwe, Paul & Park, Albert & Zhao, Meng, 2012. "Visualizing Development:Eyeglasses and Academic Performance in Rural Primary Schools in China," Working Papers 120032, University of Minnesota, Center for International Food and Agricultural Policy.
    6. Derksen, Laura & Leclerc, Catherine Michaud & Souza, Pedro CL, 2019. "Searching for Answers : The Impact of Student Access to Wikipedia," The Warwick Economics Research Paper Series (TWERPS) 1236, University of Warwick, Department of Economics.
    7. Abhijit V. Banerjee & Rukmini Banerji & Esther Duflo & Rachel Glennerster & Stuti Khemani, 2010. "Pitfalls of Participatory Programs: Evidence from a Randomized Evaluation in Education in India," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 1-30, February.
    8. Ama Baafra Abeberese, 2011. "Improving Reading Skills by Encouraging Children to Read: A Randomized Evaluation of the Sa Aklat Sisikat Reading Program in the Philippines," Working Papers id:4312, eSocialSciences.
    9. Harounan Kazianga & Leigh Linden & Ali Protik & Matt Sloan, 2015. "Impact Evaluation of Burkina Faso's BRIGHT Program: Design Report," Mathematica Policy Research Reports c0250cd3f27d448ea70d909c3, Mathematica Policy Research.
    10. Heath, Rachel & Mushfiq Mobarak, A., 2015. "Manufacturing growth and the lives of Bangladeshi women," Journal of Development Economics, Elsevier, vol. 115(C), pages 1-15.
    11. Park, Albert & Shi, Xinzheng & Hsieh, Chang-tai & An, Xuehui, 2015. "Magnet high schools and academic performance in China: A regression discontinuity design," Journal of Comparative Economics, Elsevier, vol. 43(4), pages 825-843.
    12. Facundo Albornoz & María Victoria Anauati & Melina Furman & Mariana Luzuriaga & María Eugenia Podestá & Inés Taylor, 2020. "Training to Teach Science: Experimental Evidence from Argentina," The World Bank Economic Review, World Bank Group, vol. 34(2), pages 393-417.
    13. Dina Pomeranz, 2017. "Impact Evaluation Methods in Public Economics," Public Finance Review, , vol. 45(1), pages 10-43, January.
    14. Pedro Carneiro & Oswald Koussihouèdé & Nathalie Lahire & Costas Meghir & Corina Mommaerts, 2015. "Decentralizing education resources: school grants in Senegal," CeMMAP working papers CWP15/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    15. Harold Alderman, 2011. "No Small Matter : The Impact of Poverty, Shocks, and Human Capital Investments in Early Childhood Development," World Bank Publications - Books, The World Bank Group, number 2266, December.
    16. Delavallade, Clara & Griffith, Alan & Shukla, Gaurav & Thornton, Rebecca, 2017. "Participation, learning, and equity in education: Can we have it all?," IFPRI discussion papers 1627, International Food Policy Research Institute (IFPRI).
    17. León, Gianmarco & Valdivia, Martín, 2015. "Inequality in school resources and academic achievement: Evidence from Peru," International Journal of Educational Development, Elsevier, vol. 40(C), pages 71-84.
    18. Allen, James & Mahumane, Arlete & Riddell, James & Rosenblat, Tanya & Yang, Dean & Yu, Hang, 2022. "Teaching and incentives: Substitutes or complements?," Economics of Education Review, Elsevier, vol. 91(C).
    19. Ama Baafra Abeberese & Todd J. Kumler & Leigh L. Linden, 2014. "Improving Reading Skills by Encouraging Children to Read in School:: A Randomized Evaluation of the Sa Aklat Sisikat Reading Program in the Philippines," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 611-633.
    20. Marchionni, Mariana & Vazquez, Emmanuel & Pinto, Florencia, 2012. "Desigualdad educativa en la Argentina. Análisis en base a los datos PISA 2009 [Education Inequality in Argentina. An analysis based on PISA 2009 data]," MPRA Paper 56420, University Library of Munich, Germany.

    More about this item

    Keywords

    treatment effect; heterogeneity; policy evaluation; random experiments; omitted variable bias;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:kse:dpaper:37. 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: . General contact details of provider: https://edirc.repec.org/data/ksecoua.html .

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iryna Sobetska The email address of this maintainer does not seem to be valid anymore. Please ask Iryna Sobetska to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/ksecoua.html .

    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.