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dc.contributor.authorBelzil, Christianen_US
dc.contributor.authorHansen, Jörgenen_US
dc.date.accessioned2012-05-08en_US
dc.date.accessioned2012-06-15T07:38:04Z-
dc.date.available2012-06-15T07:38:04Z-
dc.date.issued2012en_US
dc.identifier.piurn:nbn:de:101:1-201205026057-
dc.identifier.urihttp://hdl.handle.net/10419/58484-
dc.description.abstractWe build on Rosenzweig and Wolpin (2000) and Keane (2010) and show that in order to fulfill the Instrumental variable (IV) identifying moment condition, a policy must be designed so that compliers and non-compliers either have the same average error term, or have an error term ratio equal to their relative share of the population. The former condition (labeled Choice Orthogonality) is essentially a no-selection condition. The latter one, referred to as Weighted Opposite Choices, may be viewed as a distributional (functional form) assumption necessary to match the degree of selectivity between compliers and noncompliers to their relative population proportions. Those conditions form a core of implicit IV assumptions that are present in any empirical applications. They allow the econometrician to gain substantial insight about the validity of a specific instrument, and they illustrate the link between identification and the statistical strength of an instrument. Finally, our characterization may also help designing a policy generating a valid instrument.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6339en_US
dc.subject.jelB4en_US
dc.subject.jelC1en_US
dc.subject.jelC3en_US
dc.subject.ddc330en_US
dc.subject.keywordinstrumental variable methodsen_US
dc.subject.keywordimplicit assumptionsen_US
dc.subject.keywordtreatment effectsen_US
dc.subject.stwInstrumentalvariablen-Schätzmethodeen_US
dc.subject.stwStichprobenverfahrenen_US
dc.subject.stwTheorieen_US
dc.titleCharacterizing the instrumental variable identifying assumption as sample selection conditionsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn71537642Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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