Using matching, instrumental variables and control functions to estimate economic choice models

James Heckman and Salvador Navarro

No 2003:4, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper investigates four topics. (1) It examines the different roles played by the propensity score (probabilitiy of selection) in matching, instrumental variable and control functions methods. (2) It contrasts the roles of exclusion restrictions in matching and selection models. (3) It characterizes the sensivity of matching to the choice of conditioning variables and demonstrates the greater robustness of control function methods to misspecification of the conditioning variables. (4) It demonstrates the problem of choosing the conditioning variables in matching and the failure of conventional model selection criteria when candidate conditioning variables are not exogenous.

Keywords: Propensity score; matching; selection models (search for similar items in EconPapers)
JEL-codes: C31 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2003-01-16
New Economics Papers: this item is included in nep-dcm, nep-ecm and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Published in Review of Economics and Statistics, 2004, pages 30-57.

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Related works:
Journal Article: Using Matching, Instrumental Variables, and Control Functions to Estimate Economic Choice Models (2004)
Working Paper: Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models (2003)
Working Paper: Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models (2003)
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