NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Comparing IV With Structural Models: What Simple IV Can and Cannot Identify

James J. Heckman, Sergio Urzua

NBER Working Paper No. 14706
Issued in February 2009
NBER Program(s):   TWP

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.

download in pdf format
   (407 K)

email paper

This paper is available as PDF (407 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14706

Published: Heckman, James J. & UrzĂșa, Sergio, 2010. "Comparing IV with structural models: What simple IV can and cannot identify," Journal of Econometrics, Elsevier, vol. 156(1), pages 27-37, May.

Users who downloaded this paper also downloaded these:
Heckman w13934 Econometric Causality
Imbens w14896 Better LATE Than Nothing: Some Comments on Deaton (2009) and Heckman and Urzua (2009)
Deaton w14690 Instruments of development: Randomization in the tropics, and the search for the elusive keys to economic development
Krueger and Perri w15582 Public versus Private Risk Sharing
Heckman w16110 Building Bridges Between Structural and Program Evaluation Approaches to Evaluating Policy
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us