We study identification and estimation of the average treatment effect in a correlated random coefficients model that allows for first stage heterogeneity and binary instruments. The model also allows for multiple endogenous variables and interactions between endogenous variables and covariates....

As the number of young children in daycare increases, people start to worry about the effect of early non-parental care. This is of special relevance as investments in the early periods of life are shown to be most important for a child's long term development. Based on the German national...

This paper estimates the causal effect of perceived job insecurity - i.e. the fear of involuntary job loss - on health in a sample of men from 22 European countries. We rely on an original instrumental variable approach based on the idea that workers perceive greater job security in countries...

Rain affects electoral turnout both through a direct effect on the cost of voting and by changing the opportunity cost. In a panel of Norwegian municipalities I find that rain on Election Day increases turnout. As turnout affects electoral outcomes, rain provides an exogeneous source of...

This paper proposes the Fixed Effects Filtered (FEF) and Fixed Effects Filtered instrumental variable (FEF-IV) estimators for estimation and inference in the case of time-invariant effects in static panel data models when N is large and T is fixed. It is shown that the FEF and FEF-IV estimators...

This paper investigates the nature of the IV method for tackling endogeneity. By tracing the rise and fall of the method in macroeconometrics and its subsequent revival in microeconometrics, it pins the method down to an implicit model respecification device - breaking the circular causality of...

This paper examines the causal effect of the experience of a hospital with treating hip fractures (volume) on treatment outcome for patients. A full sample of administrative data from Germany for the year 2007 is used. We apply an instrumental variable approach to eliminate endogeneity concerns...