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Simple Estimators for Treatment Parameters in a Latent Variable Framework

James Heckman, Justin Tobias () and Edward Vytlacil ()

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This note derives simply computed closed-form expressions for the Average Treatment Effect (ATE), the effect of Treatment on the Treated (TT), the Local Average Treatment Effect (LATE) and Marginal Treatment Effect (MTE) in a latent variable framework for both normal and non-normal models. Asymptotic standard errors for versions of these parameters which average over observed characteristics are also obtained. The performances of the derived estimators are also evaluated in several Monte Carlo experiments under correct and misspecification.

Date: 2003-01-01
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Published in Review of Economics and Statistics 2003, vol. 85, pp. 748-755

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