Journal Article

Instrumental variables, local instrumental variables and control functions


Jean-Pierre Florens, James Heckman, Costas Meghir, Edward Vytlacil

Published Date

1 September 2008


Journal Article

We consider the identification of the average treatment effect in models with continuous endogenous variables whose impact is heterogeneous. We derive a testable restriction that allows us to assess the degree of unobserved heterogeneity. Our analysis uses assumptions relating to the Local Instrumental Variables (LIV) approach and the control function approach.

Find the working paper here.