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On Heckits, LATE, and Numerical Equivalence
Kline, Patrick - 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/10012916571
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Instrumental Variables and Causal Mechanisms : Unpacking the Effect of Trade on Workers and Voters
Dippel, Christian - 2018
This paper shows that import exposure affects voting behavior because it affects local labor markets. We develop a new framework for mediation analysis where one instrumental variable is sufficient to identify three causal effects. Using German data from 1987–2009, we find that import exposure...
Persistent link: https://www.econbiz.de/10012927102
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How to Use One Instrument to Identify Two Elasticities
Gavrilova, Evelina - 2017
We show that an insight from taxation theory allows identification of both the supply and demand elasticities with only … one instrument. Ramsey (1928) and subsequent models of taxation assume that a tax levied on the demand side only affects … demand through the price after taxation. Econometrically, we show that this assumption functions as an additional exclusion …
Persistent link: https://www.econbiz.de/10012960094
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From Late to MTE : Alternative Methods for the Evaluation of Policy Interventions
Cornelissen, Thomas - 2016
This paper provides an introduction into the estimation of Marginal Treatment Effects (MTE). Compared to the existing surveys on the subject, our paper is less technical and speaks to the applied economist with a solid basic understanding of econometric techniques who would like to use MTE...
Persistent link: https://www.econbiz.de/10012985790
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Simple Tests for Selection : Learning More from Instrumental Variables
Black, Dan A. - 2017
We provide simple tests for selection on unobserved variables in the Vytlacil-Imbens-Angrist framework for Local Average Treatment Effects. The tests allow researchers not only to test for selection on either or both of the treated and untreated outcomes, but also to assess the magnitude of the...
Persistent link: https://www.econbiz.de/10012958872
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Productivity, Price- and Wage-Markups: An Empirical Analysis of the Dutch Manufacturing Industry
Amoroso, Sara; Melenberg, Bertrand; Plasmans, Joseph; … - CESifo - 2015
study the correlation of the estimated parameters and markups with the firm-level productivity growth. Second, the paper … contributes to literature on the structural identification of production functions in two ways. As a first step, it reviews the … price, and the collinearity among input factors of production. Additionally, we propose an identification strategy that …
Persistent link: https://www.econbiz.de/10011210785
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Asymptotic Variance of Brier (Skill) Score in the Presence of Serial Correlation
Lahiri, Kajal - 2015
applicable in circumstances with weak serial correlation. A simulation experiment and an empirical application from … macroeconomics underscore the importance of taking care of serial correlation. We find that the conventional variances are too …
Persistent link: https://www.econbiz.de/10013024358
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Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models with Weakly Exogenous Regressors
Chudik, Alexander; Pesaran, M. Hashem - 2021
This paper extends the Common Correlated Effects (CCE) approach developed by Pesaran (2006) to heterogeneous panel data models with lagged dependent variable and/or weakly ex-ogenous regressors. We show that the CCE mean group estimator continues to be valid but the following two conditions must...
Persistent link: https://www.econbiz.de/10013315784
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Exponent of Cross-Sectional Dependence : Estimation and Inference
Bailey, Natalia - 2012
An important issue in the analysis of cross-sectional dependence which has received renewed interest in the past few years is the need for a better understanding of the extent and nature of such cross dependencies. In this paper we focus on measures of cross-sectional dependence and how such...
Persistent link: https://www.econbiz.de/10013111367
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Correlation Neglect in Belief Formation
Enke, Benjamin - 2013
-connected information sources, implying a pattern of “overshooting” beliefs. Additionally, in an experimental asset market, correlation …
Persistent link: https://www.econbiz.de/10013072106