Working Paper

Alternative approaches to evaluation in empirical microeconomics

Authors

Richard Blundell, Monica Costa Dias

Published Date

22 October 2002

Type

Working Paper (CWP10/02)

Four alternative but related approaches to empirical evaluation of policy interventionsare studied: social experiments, natural experiments, matching methods, and instrumental variables. In each case the necessary assumptions and the data requirements are considered for estimation of a number of key parameters of interest. These key parameters include the average treatment effect, the treatment of thetreated and the local average treatment effect. Some issues of implementation and interpretation are discussed drawing on the labour market programme evaluation literature.