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Abadie's Kappa and Weighting Estimators of the Local Average Treatment Effect

Sloczynski, Tymon; Uysal, S. Derya; Wooldridge, Jeffrey M. - 2022

In this paper we study the finite sample and asymptotic properties of various weighting estimators of the local average treatment effect (LATE), several of which are based on Abadie (2003)’s kappa theorem. Our framework presumes a binary endogenous explanatory variable (“treatment”) and a...

Persistent link: https://www.econbiz.de/10013291319

Did we overestimate the role of social preferences? The case of self-selected student samples

Falk, Armin; Meier, Stephan; Zehnder, Christian - 2010

Social preference research has fundamentally changed the way economists think about many important economic and social phenomena. However, the empirical foundation of social preferences is largely based on laboratory experiments with self-selected students as participants. This is potentially...

Persistent link: https://www.econbiz.de/10010274947

Standing on the Shoulders of Giants or Science? – Lessons from Ordoliberalism

Feld, Lars P.; Köhler, Ekkehard A. - 2023

James Buchanan would have celebrated his 100th birthday in 2019. This serves as an inspiration to look at the future of public choice and the question of how much normativity public choice can bear. In our analysis we draw parallels between public choice and German ordoliberalism (and its source...

Persistent link: https://www.econbiz.de/10014290292

Lab in the Field: Measuring Preferences in the Wild

Gneezy, Uri; Imas, Alex - 2016

In this chapter, we discuss the “lab-in-the-field” methodology, which combines elements of both lab and field … begin by examining how the methodology has been used to test economic models with populations of theoretical interest. Next … covariates to test theoretical predictions and explore behavioral mechanisms. We proceed to discuss how the methodology can be …

Persistent link: https://www.econbiz.de/10011522453

On Credibility and Causality in Economics: A Critical Appraisal

Bergh, Andreas; Wichardt, Philipp C. - 2024

Establishing causal relationships is a core aspect of empirical economics. Borrowing ideas from the medical sciences, we propose tentative guidelines for reliable causal inferences that cover aspects related to both the study itself and its fit with the existing background knowledge. We argue...

Persistent link: https://www.econbiz.de/10015061959

Does Development Aid Increase Military Expenditure?

Langlotz, Sarah; Potrafke, Niklas - 2016

The diversion of development aid to the recipient's military may be one explanation why aid is often found to be ineffective in promoting economic growth and development. Previous studies have not derived the causal effects of development aid on military expenditure. Using a new instrumental...

Persistent link: https://www.econbiz.de/10011555530

On Heckits, LATE, and Numerical Equivalence

Kline, Patrick; Walters, Christopher R. - 2018

Structural econometric methods are often criticized for being sensitive to functional form assumptions. We study parametric estimators of the local average treatment effect (LATE) derived from a widely used class of latent threshold crossing models and show they yield LATE estimates...

Persistent link: https://www.econbiz.de/10011872051

Naturalization and Labor Market Performance of Immigrants in Germany

Riphahn, Regina T.; Saif, Salwan - 2018

Naturalization may be a relevant policy instrument affecting immigrant integration in host-country labor markets. We study the effect of naturalization on labor market outcomes of immigrants in Germany. We apply recent survey data and exploit a reform of naturalization rules in an instrumental...

Persistent link: https://www.econbiz.de/10011931967

Which Communities should be afraid of mobility?: the effects of agglomeration economies on the sensitivity of firm location to local taxes

Jofre-Monseny, Jordi; Solé-Ollé, Albert - 2008

This paper examines the effects of agglomeration economies (AE) on the sensitivity of firm location to tax differentials. An initial reading of the story suggests that, with AE, when a firm moves into a community attracted by a tax reduction, other firms may decide to move in as well. This...

Persistent link: https://www.econbiz.de/10010264369

Testing the tax competition theory : how elastic are national tax bases in OECD countries?

Riedl, Aleksandra; Rocha-Akis, Silvia - 2009

To what extent do countries' corporate income tax (CIT) rates attract foreign tax bases? What are the revenue implications of a unilateral tax reduction when tax bases are internationally mobile? These questions are explored using a panel of annual data from 17 OECD countries spanning the period...

Persistent link: https://www.econbiz.de/10010266046