Identification of Treatment Effects Using Control Functions in Models with Continuous, Endogenous Treatment and Heterogeneous Effects

20 Pages Posted: 16 May 2008 Last revised: 22 May 2008

See all articles by Jean-Pierre Florens

Jean-Pierre Florens

University of Toulouse

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Costas Meghir

Yale University; Yale University - Cowles Foundation; Institute for Fiscal Studies (IFS); National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Edward Vytlacil

Yale University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: May 2008

Abstract

We use the control function approach to identify the average treatment effect and the effect of treatment on the treated in models with a continuous endogenous regressor whose impact is heterogeneous. We assume a stochastic polynomial restriction on the form of the heterogeneity but, unlike alternative nonparametric control function approaches, our approach does not require large support assumptions.

Suggested Citation

Florens, Jean-Pierre and Heckman, James J. and Meghir, Costas and Vytlacil, Edward J., Identification of Treatment Effects Using Control Functions in Models with Continuous, Endogenous Treatment and Heterogeneous Effects (May 2008). NBER Working Paper No. w14002. Available at SSRN: https://ssrn.com/abstract=1133916

Jean-Pierre Florens (Contact Author)

University of Toulouse ( email )

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James J. Heckman

University of Chicago - Department of Economics ( email )

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Costas Meghir

Yale University ( email )

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Edward J. Vytlacil

Yale University - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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