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
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Citations: View citations in EconPapers (135)

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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)
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