A classic argument in favor of a fixed exchange rate regime (ERR) has been the promotion of international trade between the pegging country and its base country. Results from previous literature point to a significant and highly positive effect of adopting a fixed ERR on bilateral trade between...

This chapter discusses how applied researchers in corporate finance can address endogeneity concerns. We begin by reviewing the sources of endogeneity—omitted variables, simultaneity, and measurement error—and their implications for inference. We then discuss in detail a number of...

In this paper we demonstrate how matching estimators can be used to evaluate policy interventions which are implemented in relatively few regions at different times. Our technique is based on translating calendar time into 'experimental time' to provide a common starting point for entry by...

Despite lower incomes, the self-employed consistently report higher satisfaction with their jobs. But are self-employed individuals also happier, more satisfied with their lives as a whole? High job satisfaction might cause them to neglect other important domains of life, such that the...

The aim of the paper is to evaluate impacts of active labour market measures in Serbia on the probability of the participants’ employment. In the estimation process of average treatment effects, propensity score-matching method was applied. Its use has considerably reduced the bias in...

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...

By comparing mean outcomes for a large number of matched samples of participants and nonparticipants we estimate individual earnings effect of the Norwegian labour market training programme (LMT) targeted at unemployed adults in the years 1991-1996. The average training effect on the trained is...

Individual long run effects of a labour market training programme targeted at unemployed adults are evaluated by comparing mean post-training earnings for matched samples of participants and non-participants. Average training effects on the trained are positive and persistent over the...

This paper evaluates the effect of an anti-poverty program, Chile Solidario, during its first two years of operation. We find that the program tends to increases significantly their take-up of cash assistance programs and of social programs for housing and employment, and to improve education...