Florens, Jean-Paul Heckman, James Meghir, Costas Vytlacil, Edward
Year of Publication:
cemmap working paper, Centre for Microdata Methods and Practice 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.