Eisenhauer, Philipp Heckman, James J. Vytlacil, Edward
Year of Publication:
ZEW Discussion Papers 14-082
The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on the cost. We apply our methodology to estimate the gross benefit and net surplus of attending college.
Cost-Benefit Analysis Treatment Effects Returns and Costs to Education