Structural Equations, Treatment Effects and Econometric Policy Evaluation

Heckman, James J.; Vytlacil, Edward

doi:10.3386/w11259

Cited by 422 publications

(808 citation statements)

References 48 publications

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“…This object is known as the average treatment effect on the treated, see e.g. Heckman and Vytlacil (2005), and it will be estimated by statistical matching.…”

Section: Econometric Approachmentioning

confidence: 99%

Long-term labour-market performance of whiplash claimants

Leth‐Petersen¹,

Rotger²

2009

Journal of Health Economics

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Abstract:A whiplash is a sudden acceleration-deceleration of the neck and head, typically associated with a rear-end car collision that may produce injuries in the soft tissue. Often there are no objective signs or symptoms of injury, and diagnosing lasting whiplash associated disorders (WAD) is difficult, in particular for individuals with mild or moderate injuries. This leaves a scope for compensation-seeking behaviour. The medical literature disagrees on the importance of this explanation. In this paper we trace the long-term earnings of a group of Danish individuals with mild to moderate injuries claiming compensation for having permanently lost earnings capacity and investigate if they return to their full pre-whiplash earnings when the insurance claim has been assessed. We find that about half of the claimants, those not granted compensation, return to an earnings level comparable with their pre-whiplash earnings suggesting that these individuals do not have chronic WAD in the sense that their earnings capacity is reduced. The other half, those granted compensation, experience persistent reductions in earnings relative to the case where they had not been exposed to a whiplash, even when they have a strong financial incentive to not reduce earnings. This suggests that moderate injuries tend to be chronic, and that compensationseeking behaviour is not the main explanation for this group. We find that claimants with chronic WADs used more health care in the year prior to the whiplash than claimants with non-chronic cases. This suggests that lower initial health capital increases the risk that a whiplash causes persistent WAD. JEL-Codes: I12, J29

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“…This object is known as the average treatment effect on the treated, see e.g. Heckman and Vytlacil (2005), and it will be estimated by statistical matching.…”

Section: Econometric Approachmentioning

confidence: 99%

Long-term labour-market performance of whiplash claimants

Leth‐Petersen¹,

Rotger²

2009

Journal of Health Economics

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“…In our setting, the monotonicity assumption requires that individuals released by a strict judge would also be released by a more lenient judge, and that individuals detained by a lenient judge would also be detained by a stricter judge. If the monotonicity assumption is violated, our two-stage least squares estimates would still be a weighted average of marginal treatment effects, but the weights would not sum to one (Angrist, Imbens, andRubin 1996, Heckman andVytlacil 2005). The monotonicity assumption is therefore necessary to interpret our estimates as a well-defined LATE.…”

Section: Methodsmentioning

confidence: 99%

The Effects of Pre-Trial Detention on Conviction, Future Crime, and Employment: Evidence from Randomly Assigned Judges

Dobbie

Goldin²,

Yang³

2018

American Economic Review

351

114

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Over 20 percent of prison and jail inmates in the UnitedEach year, more than 11 million individuals around the world are imprisoned prior to conviction. The United States leads all other countries with approximately half a million individuals detained before trial on any given day, nearly double the next highest country, China (Walmsley 2013). The high rate of pretrial detention in the United States is due to both the widespread use of monetary bail and the limited financial resources of most defendants. Nationwide, less than 25 percent of felony defendants are released without financial conditions, and the typical felony defendant is assigned a bail amount of more than $55,000

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“…15 In a series of papers, Heckman, Vytlacil and coauthors (2001, 2005 expand these insights in a number of directions. They demonstrate (Vytlacil, 2002) that the LATE model is equivalent to a selection model under many conditions, that LATE is a discrete approximation to the MTE (Heckman and Vytlacil, 2005;Heckman, Urzua, and Vytlacil, 2006) and develop a technique called local instrumental variables that identifies marginal treatment effects (Heckman and Vytlacil, 2005;Heckman, Urzua, and Vytlacil, 2006).…”

Section: Downloaded Frommentioning

confidence: 99%

“…When firms respond to corporate law and governance heterogeneously-i.e., when a governance mechanism affects one firm differently from another-then the cures for endogeneity, such as instrumental variables techniques, subsample estimates, or fixed-effects estimators, generate estimates of the effect of various governance strategies for a select group of firms. The relationship of the estimates derived for these subgroups to the average treatment effect (ATE) of a policy is the subject of an extensive literature in econometrics and labor economics (Imbens and Angrist, 1994;Heckman and Vytlacil, 2005;Heckman, Urzua, and Vytlacil, 2006) that has to this point been ignored by the corporate law and governance literature as well as in empirical legal studies, more generally.…”

Section: Introductionmentioning

confidence: 99%

Interpreting Empirical Estimates of the Effect of Corporate Governance

Listokin

2008

American Law and Economics Review

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Empirical studies of corporate governance address potential endogeneity problems, but fail to place endogeneity in the context of a model and ignore the possibility of disparate treatment effects across companies. This paper tackles these defects. The model and analysis in the paper demonstrate that: (1) Valid and positive estimates for the effect of governance can only arise if there is random variation in governance and governance is systematically underproduced, or governance is chosen randomly without bias and the randomness under study concerns a subpopulation with below-average governance.(2) Governance models that correct for endogeneity using subsamples of firms, fixed effects, or instrumental variables estimates focus on subpopulations of companies that may have different responses to a governance treatment than the average firm. (JEL K22, G34)

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Structural Equations, Treatment Effects and Econometric Policy Evaluation

Cited by 422 publications

References 48 publications

Long-term labour-market performance of whiplash claimants

Long-term labour-market performance of whiplash claimants

The Effects of Pre-Trial Detention on Conviction, Future Crime, and Employment: Evidence from Randomly Assigned Judges

Interpreting Empirical Estimates of the Effect of Corporate Governance

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