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Florens, Jean-Paul
Heckman, James
Meghir, Costas
Vytlacil, Edward
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cemmap working paper CWP15/02
We consider the identification of the average treatment effect in models with continuous endogenous variables whose impact is heterogeneous. We derive a testable restriction that allows us to assess the degree of unobserved heterogeneity. Our analysis uses assumptions relating to the Local Instrumental Variables (LIV) approach and the control function approach.
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