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Estimating Distributions of Treatment Effects with an Application to the Returns to Schooling and Measurement of the Effects of Uncertainty on College / Pedro Carneiro, Karsten T. Hansen, James J. Heckman.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Carneiro, Pedro.
Contributor:
National Bureau of Economic Research.
Hansen, Karsten T.
Heckman, James J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9546.
NBER working paper series no. w9546
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2003.
Summary:
This paper uses factor models to identify and estimate distributions of counterfactuals. We extend LISREL frameworks to a dynamic treatment effect setting, extending matching to account for unobserved conditioning variables. Using these models, we can identify all pairwise and joint treatment effects. We apply these methods to a model of schooling and determine the intrinsic uncertainty facing agents at the time they make their decisions about enrollment in school. Reducing uncertainty in returns raises college enrollment. We go beyond the Veil of Ignorance' in evaluating educational policies and determine who benefits and who loses from commonly proposed educational reforms.
Notes:
Print version record
March 2003.

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