Comparing IV with structural models: what simple IV can and cannot identify

James Heckman and Sergio Urzua

No CWP08/10, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

Abstract:

This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak's Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key identifying assumption that allows structural methods to be more informative than IV can be tested with data and does not have to be imposed.

Date: 2010-04-24
New Economics Papers: this item is included in nep-ecm
References: Add references at CitEc
Citations: View citations in EconPapers (135)

Downloads: (external link)
http://cemmap.ifs.org.uk/wps/cwp0810.pdf (application/pdf)

Related works:
Journal Article: Comparing IV with structural models: What simple IV can and cannot identify (2010)
Working Paper: Comparing IV with Structural Models: What Simple IV Can and Cannot Identify (2009)
Working Paper: Comparing IV With Structural Models: What Simple IV Can and Cannot Identify (2009)
Working Paper: Comparing IV with Structural Models: What Simple IV Can and Cannot Identify (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ifs:cemmap:08/10

Ordering information: This working paper can be ordered from
The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE

Access Statistics for this paper

More papers in CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE. Contact information at EDIRC.
Bibliographic data for series maintained by Emma Hyman ().