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.
Authors
![Costas Meghir](/sites/default/files/styles/square_desktop/public/2022-07/Costas%20Meghir.jpg?itok=_N-Qaly5)
Research Fellow Yale University
Costas is a Research Fellow of the IFS and a Professor of Economics at Yale University and a Visiting Professor at University College London.
![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)
NYU
![Person graphic](/sites/default/files/styles/square_desktop/public/2022-06/IFS-person-graphic.png?itok=hWCtTSrz)
Jean-Pierre Florens
Working Paper details
- DOI
- 10.1920/wp.cem.2002.1502
- Publisher
- IFS
Suggested citation
Florens, J et al. (2002). Instrumental variables, local instrumental variables and control functions. London: IFS. Available at: https://ifs.org.uk/publications/instrumental-variables-local-instrumental-variables-and-control-functions (accessed: 30 June 2024).
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