When is the Local Average Treatment Close to the Average?: Evidence from Fertility and Labor Supply
研究工具变量估计的局部平均处理效应(LATE)何时能代表总体平均处理效应(ATE),通过比较台湾和美国性别偏好工具变量的差异,发现台湾的估计更接近ATE。
The local average treatment effect (LATE) may differ from the average treatment effect (ATE) when those influenced by the instrument are not representative of the overall population. Heterogeneity in treatment effects may imply that parameter estimates from 2SLS are uninformative regarding the average treatment effect, motivating a search for instruments that affect a larger share of the population. In this paper, I present and estimate a model of home production with heterogeneous costs and benefits to fertility. The results indicate that a sex-preference instrument in Taiwan produces IV estimates closer to the estimated ATE than in the United States, where sex preference is weaker.