Examining China’s manufacturing and transportation, we analyze how rapid expressway-network expansion fostered market access and industrial development. A domestic-trade model generates the market-access formula, estimatable equations, and economics for empirical findings. An estimation of...

We test whether the decisions in a common-pool resource game are better modeled game- theoretically as strategic substitutes or complements using an individual-level dataset of groundwater usage that accounts for 3% of US irrigated agriculture. Based on a regression framework with instrumental...

Following an influential article by Angrist and Krueger (1992) on two-sample instrumental variables (TSIV) estimation, numerous empirical researchers have applied a computationally convenient two-sample two-stage least squares (TS2SLS) variant of Angrist and Krueger's estimator. In the...

This paper discusses how randomized social experiments operate as an instrumental variable. For two types of randomization schemes, the fundamental experimental estimation equations are derived from the principle that experiments equate bias in control and experimental samples. Using...

This paper presents a method for estimating the average treatment effects (ATE) of an exponential endogenous switching model where the coefficients of covariates in the structural equation are random and correlated with the binary treatment variable. The estimating equations are derived under...

Linear instrumental variable estimators, such as two-stage least squares (TSLS), are commonly interpreted as estimating positively weighted averages of causal effects, referred to as local average treatment effects (LATEs). We examine whether the LATE interpretation actually applies to the types...

The view that empirical strategies in economics should be transparent and credible now goes almost without saying. The local average treatment effects (LATE) framework for causal inference helped make this so. The LATE theorem tells us for whom particular instrumental variables (IV) and...