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Using Matching, Instrumental Variables and Control Functions to Estimate Economic Choice Models / James J. Heckman, Salvador Navarro-Lozano.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Heckman, James J.
Contributor:
National Bureau of Economic Research.
Navarro-Lozano, Salvador.
Series:
Working Paper Series (National Bureau of Economic Research) no. w9497.
NBER working paper series no. w9497
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 investigates four topics. (1) It examines the different roles played by the propensity score (probability of selection) in matching, instrumental variable and control functions methods. (2) It contrasts the roles of exclusion restrictions in matching and selection models. (3) It characterizes the sensitivity of matching to the choice of conditioning variables and demonstrates the greater robustness of control function methods to misspecification of the conditioning variables. (4) It demonstrates the problem of choosing the conditioning variables in matching and the failure of conventional model selection criteria when candidate conditioning variables are not exogenous.
Notes:
Print version record
February 2003.

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