Comparing IV with structural models: what simple IV can and cannot identify

This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak's Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key identifying assumption that allows structural methods to be more informative than IV can be tested with data and does not have to be imposed.

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Year of publication:	2009
Authors:	Heckman, James Joseph ; Urzúa, Sergio
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Instrumentalvariablen-Schätzmethode \| Strukturgleichungsmodell \| Schätztheorie \| Vergleich \| Instrumental variables \| structural approaches \| Marschak's Maxim

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Series:	IZA Discussion Papers ; 3980
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	59289276X [GVK] hdl:10419/35816 [Handle]
Classification:	C31 - Cross-Sectional Models; Spatial Models
Source:	EconStor

Persistent link: https://www.econbiz.de/10010274254