<p>This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak's Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key identifying assumption that allows structural methods to be more informative than IV can be tested with data and does not have to be imposed. </p>
Authors
![James Heckman](/sites/default/files/styles/square_desktop/public/2022-07/James%20Heckman.jpg?itok=zU2q-IGg)
Research Associate University of Chicago
James is a Research Associate of the IFS and the Henry Schultz Distinguished Service Professor of Economics at the University of Chicago.
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Sergio Urzua
Working Paper details
- DOI
- 10.1920/wp.cem.2010.0810
- Publisher
- IFS
Suggested citation
Heckman, J and Urzua, S. (2010). Comparing IV with structural models: what simple IV can and cannot identify. London: IFS. Available at: https://ifs.org.uk/publications/comparing-iv-structural-models-what-simple-iv-can-and-cannot-identify (accessed: 3 July 2024).
Related documents
More from IFS
Understand this issue
![State Pension claim form](/sites/default/files/styles/square_desktop/public/2023-12/state-pension-claim-form.jpg?itok=OCixJu9J)
Where next for the state pension?
13 December 2023
![Nice houses with city in the background](/sites/default/files/styles/square_desktop/public/2023-12/nice-houses-with-city-in-background_0.jpg?itok=TDx-TwSe)
Social mobility and wealth
12 December 2023
![Chancellor Jeremy Hunt with red box](/sites/default/files/styles/square_desktop/public/2023-12/chancellor-jeremy-hunt-with-red-box.jpg?itok=Dah5hdYC)
Autumn Statement 2023: IFS analysis
23 November 2023
Policy analysis
![Welsh town with mountains behind](/sites/default/files/styles/square_desktop/public/2024-06/Welsh-town-feature.jpg?itok=5axb5wZn)
How would the parties’ tax and spending plans affect Scotland and Wales?
28 June 2024
![Man putting vote into ballot box](/sites/default/files/styles/square_desktop/public/2022-07/Man-putting-vote-into-ballot-box.jpg?itok=Pa6g41dr)
General Election 2024: Manifesto Analysis Presentations
24 June 2024
![Shopping street](/sites/default/files/styles/square_desktop/public/2024-06/Street-scene-.jpg?itok=R39cR6Xp)
How do the last five years measure up on levelling up?
19 June 2024
Academic research
![Working paper cover](/sites/default/files/styles/portrait/public/2024-06/WP202428-The-impact-of%20labour-demand-shocks-when-occupational-labour-supplies-are-heterogeneous.jpg?itok=Erq9-V9O)
The impact of labour demand shocks when occupational labour supplies are heterogeneous
28 June 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-06/WP202427-The-impact-of-flexibility-at-work-on-fertility_Page_01.jpg?itok=pHaEvbkK)
The impact of flexibility at work on fertility
11 June 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-06/WP202426-Intergenerational-mobility-in-socio-emotional-skills_Page_01.jpg?itok=wH1znQhh)
Intergenerational mobility in socio-emotional skills
5 June 2024