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:	2009-01
Authors:	Heckman, James J. ; Urzua, Sergio
Institutions:	Institute for the Study of Labor (IZA)
Subject:	structural approaches \| instrumental variables \| Marschak's Maxim

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	forthcoming in: Journal of Econometrics Number 3980
Classification:	C31 - Cross-Sectional Models; Spatial Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005015482