The generalized Roy model and the cost-benefit analysis of social programs

Philipp Eisenhauer, James Heckman and Edward Vytlacil

No 14-082, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on the cost. We apply our methodology to estimate the gross benefit and net surplus of attending college.

Keywords: Cost-Benefit Analysis; Treatment Effects; Returns and Costs to Education (search for similar items in EconPapers)
JEL-codes: C31 C32 I21 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:14082

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