Economics, Econometrics and Finance
3 years ago

Unlocking Accurate Program Impact Estimates with Instrumental Variables Method

The World Bank eBooks
Instrumental Variables Estimation and Local Average Treatment Effects
Paul Glewwe, Petra Todd

Paper Summary

Instrumental variables methods help estimate treatment effects in programs and projects. They can show the effect of treatment when some people refuse it or when there is bias in selecting who gets treated. However, finding good instrumental variables can be tricky, and the assumptions needed for accurate estimates may not always be met.

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