Policy evaluations require estimation of program impacts on both mean and dispersion of potential outcomes, even though the previous identication eorts have focused mostly on impacts on the mean. We propose the use of instrumental variables and pairwise matching to identify the average treatment...

SUMMARY We propose the use of instrumental variables and pairwise matching to identify the average treatment effect on variance in potential outcomes. We show that identifying and estimating program impact on dispersion of potential outcomes in an endogenous‐switching model is possible,...