Treatment effect heterogeneity in theory and practice
By: Joshua Angrist
Contributors: Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 03-27; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 03-27.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2003
Place of publication: Cambridge, MA
Language: eng
Number of pages: 34
Description: Instrumental Variables (IV) methods identify internally valid causal effects for individuals whose treatment status is manipulable by the instrument at hand. Inference for other populations requires homogeneity assumptions. This paper outlines a theoretical framework that nests causal homogeneity assumptions. These ideas are illustrated using sibling-sex composition to estimate the effect of child-bearing on economic and marital outcomes. The application is motivated by American welfare reform. The empirical results generally support the notion of reduced labor supply and increased poverty as a consequence of childbearing, but evidence on the impact of childbearing on marital stability and welfare use is more tenuous. Keywords: Instrumental Variables, Marital Stability, Welfare, Causal Effects. JEL Classification: C31, J12, J13.
Notes: "August 2003."

Includes bibliographical references (p. 33-34).

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