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Dynamic policy analysis

Authors: Jaap Abbring and James Heckman
Date: 11 February 2008
Type: cemmap Working Paper, CWP05/08
DOI: 10.1920/wp.cem.2008.0508


This chapter studies the microeconometric treatment-effect and structural approaches to dynamic policy evaluation. First, we discuss a reduced-form approach based on a sequential randomization or dynamic matching assumption that is popular in biostatistics. We then discuss two complementary approaches for treatments that are single stopping times and that allow for non- trivial dynamic selection on unobservables. The first builds on continuous-time duration and event-history models. The second extends the discrete-time dynamic discrete-choice literature.

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Jaap Abbring and James Heckman January 2008, Dynamic policy analysis, Book chapter, Springer Verlag

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