We investigate conditions sufficient for identification of average treatment effects using instrumental variables. First we show that the existence of valid instruments is not sufficient to identify any meaningful average treatment effect. We then establish that the combination of an instrument and a condition on the relation between the instrument and the participation status is sufficient for identification of a local average treatment effect for those who can be induced to change their participation status by changing the value of the instrument. Finally we derive the probability limit of the standard IV estimator under these conditions. It is seen to be a weighted average of local average treatment effects.

Evolution and Rationality Some Recent Game-Theoretic Results. Identification and Estimation of Local Average Treatment Effects

http://jenni.uchicago.edu/papers/pku_2007/Aakvik_Heckman_etal_2005_JoE_v125_n1-2.pdf

Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs

In this paper we study the effects of unemployment benefit duration and the business cycle on unemployement duration. We construct durations for individuals entering unemployment from a longitudinal sample of Spanish men in 1987-1994. Estimated discrete hazard models indicates that receipt of unemployment benefits significantly reduces the hazard of leaving unemployment. For instance, at durations of 3 months, the hazard for workers without benefits is twice as large as that for workers with benefits. Favorable business conditions increase the hazard of leaving unemployment. At sample-period magnitudes, this effect is significantly smaller than that of benefit receipt.

Unemployment Duration, Benefit Duration, and the Business Cycle.Versión Revisada

G-Cubed is a multi-country, multi-sector, intertemporal general equilibrium model that has been used to study a variety of policies in the areas of environmental regulation, tax reform, monetary and fiscal policy, and international trade. It is designed to bridge the gaps between three areas of research – econometric general equilibrium modeling, international trade theory, and modern macroeconomics – by incorporating the best features of each. This chapter describes the theoretical and empirical structure of the model, summarizes its applications and contributions to the literature, and discusses two example applications in detail.

A global approach to energy and the environment: The G-cubed model

This survey summarizes the main research findings about teaching economics to undergraduates. After briefly reviewing the history of research on undergraduate economic education, it discusses the status of the economics major—numbers and trends, goals, coursework, outcomes, and the principles courses. Some economic theory is used to explain the likely effects of pedagogical decisions of faculty and the learning choices that students make. Major results from empirical research are reviewed from the professor perspective on such topics as teaching methods, online technology, class size, and textbooks. Studies of student learning are discussed in relation to study time, grades, attendance, math aptitude, and cheating. The last section discusses changes in the composition of faculty who teach undergraduate economics and effects from changes in instructional technology and then presents findings from the research about measuring teaching effectiveness and the value of teacher training. ( JEL A22, I23, J44)

Research on Teaching Economics to Undergraduates

This article utilizes administrative data to examine both short- and long-term employment impacts for people with cognitive impairments who applied for vocational rehabilitation services in Virginia in 2000. These data provide long-term quarterly information on services and employment outcomes. We model behavior, allow for multiple service choices, use long-run labor market data, and use valid instruments. Results imply that services generally have positive long-run labor market outcome effects that appear to substantially exceed the cost of providing services.

The effects of vocational rehabilitation for people with cognitive impairments

Fixed-Effects Estimates of Earnings Impacts for the Vocational Rehabilitation Program.

Since 1975, vocational rehabilitation has represented a small and declining component of federal disability policy. This trend is perhaps reflective of the relatively crude assessment techniques that have been applied to the program in the past. Using the Virginia Vocational Rehabilitation (VR) program as a prototype, we outline how the data and methods of assessment can be improved for purposes of directing public policy. The key issues include identifying an appropriate comparison group for VR, analysis of longitudinal earnings data, and methods for refining measures of program cost. The analysis provides "fixed-effects" estimates of net earnings impacts for each of three postprogram years stratified by disability classification and gender. These treatment impacts are compared to total and service-specific costs. In general, this analysis suggests that evaluation of VR can be substantially improved and that these improvements can be attained at relatively modest analytic cost.

Assessing the role of vocational rehabilitation in disability policy

The study presents benefit-cost ratios for 14 disability cohorts served by the Vocational Rehabilitation (VR) Program. The earnings impacts are estimated in a quasiexperimental framework using an internal comparison group. The earnings data are from a unique national panel constructed by linking client data of the Rehabilitative Services Administration with earnings histories from the Social Security Administration. These earnings data accommodate a series of statistical tests that allow us to identify and control for the presence of selection bias when estimating treatment impacts. The results indicate that the VR program is cost-effective in general, although not universally so across specific disabilities.

Evaluating the vocational rehabilitation program using longitudinal data. Evidence for a quasiexperimental research design.

The authors examine whether the administrative location of an economics department in a business versus liberal arts school alters the character of the economics program provided to undergraduate majors. To test this hypothesis, they constructed a curricular character index (CCI) based on a detailed accounting of assorted dimensions of an economics major. The CCI served as the dependent variable in a regression model that controlled for other institutional attributes that could influence curricular character. The sample of 148 primarily undergraduate institutions was selected to impose some semblance of a ceteris paribus environment. Contrary to earlier findings, the empirical results strongly indicate that the administrative location of an economics department in business versus liberal arts schools significantly changes the character of the program offered to majors.

Liberal Arts or Business: Does the Location of the Economics Department Alter the Major?

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