"Offers an analysis of the promise and controversy around teacher pay for performance. Identifies potential strengths and weaknesses of performance-driven compensation policies and addresses key conceptual and implementation issues that have dominated the debate surrounding teacher compensation...

This paper proposes a nonparametric method of estimating marginal treatment effects in heterogeneous populations. Building upon an insight of Heckman and Vytlacil, the conventional treatment effects model with heterogeneous effects is shown to imply that outcomes are a nonlinear function of...