Economics at your fingertips  

On the Implications of Essential Heterogeneity for Estimating Causal Impacts Using Social Experiments

Martin Ravallion ()

Journal of Econometric Methods, 2015, vol. 4, issue 1, 7

Abstract: The standard model of essential heterogeneity, whereby program take up depends on unobserved costs and benefits of take up, is generalized to allow the source of latent heterogeneity to influence counterfactual outcomes. The standard instrumental variables (IV) estimator is shown to still be preferable to the naïve, ordinary least squares (OLS), estimator for mean impact on the treated. However, under certain conditions, the IV estimate of the overall mean impact will be even more biased than OLS. Examples are given for stylized training, insurance and microcredit schemes.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... -0009.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: On the implications of essential heterogeneity for estimating causal impacts using social experiments (2011) Downloads
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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Journal of Econometric Methods from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2019-10-19
Handle: RePEc:bpj:jecome:v:4:y:2015:i:1:p:7:n:6