Proxy variables are often used in linear regression models with the aim of removing potential confounding bias. In this paper we formalise proxy variables within the potential outcome framework, giving conditions under which it can be shown that causal effects are nonparametrically identified....

In observational studies, the non-parametric estimation of a binary treatment effect is often performed by matching each treated individual with a control unit which is similar in observed characteristics (covariates). In practical applications, the reservoir of covariates available may be...

In this paper we introduce a stochastic network formation model where agents choose both actions and links. Neighbors in the network benefit from each other's action levels through local complementarities and there exists a global interaction effect reflecting a strategic substitutability in...

We exploit Italian law DPR 81/2009, which determines class composition, as an instrument to identify the causal effect of grouping students of different grades into a single class (multigrading) on children cognitive achievement. This article focuses on 7-year-old students - those at the...

This paper investigates how high school gender composition affects students' participation in STEM college studies. Using Danish administrative data, we exploit idiosyncratic within-school variation in gender composition. We find that having a larger proportion of female peers reduces women's...

This paper studies how a student's ordinal achievement rank affects performance and specialization choices in university. We exploit data from a setting where students are randomly assigned to teaching sections and find that students with a higher rank in their section achieve higher grades,...

Parenting decisions are among the most consequential choices people make throughout their lives. Starting with the work of pioneers such as Gary Becker, economists have used the toolset of their discipline to understand what parents do and how parents' actions affect their children. In recent...

We study how grouping students of different grades into a single class (multigrading) affects children's cognitive achievement. To do so, we build instruments to identify the causal effect of multigrading by exploiting an Italian law that controls class size and grade composition. We focus on...

We exploit Italian law DPR 81/2009, which determines class composition, as an instrument to identify the causal effect of grouping students of different grades into a single class (multigrading) on children cognitive achievement. This article focuses on 7-year-old students - those at the...

We study how multigrading, which is mixing students of different grades into a single class, affects children's cognitive achievement in primary school. We build instruments to identify the causal effect of multigrading by exploiting an Italian law that controls class size and grade composition....