Extrapolate-Ing: External Validity and Overidentification in the Late Framework

30 Pages Posted: 6 Dec 2010

See all articles by Joshua D. Angrist

Joshua D. Angrist

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Iván Fernández‐Val

Boston University - Department of Economics

Date Written: December 2010

Abstract

This paper develops a covariate-based approach to the external validity of instrumental variables (IV) estimates. Assuming that differences in observed complier characteristics are what make IV estimates differ from one another and from parameters like the effect of treatment on the treated, we show how to construct estimates for new subpopulations from a given set of covariate-specific LATEs. We also develop a reweighting procedure that uses the traditional overidentification test statistic to define a population for which a given pair of IV estimates has external validity. These ideas are illustrated through a comparison of twins and sex-composition IV estimates of the effects childbearing on labor supply.

Suggested Citation

Angrist, Joshua and Fernandez-Val, Ivan, Extrapolate-Ing: External Validity and Overidentification in the Late Framework (December 2010). NBER Working Paper No. w16566. Available at SSRN: https://ssrn.com/abstract=1719927

Joshua Angrist (Contact Author)

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Ivan Fernandez-Val

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