Alternative approaches to evaluation in empirical microeconomics

Arbeitspapier

This paper reviews some of the most popular policy evaluation methods in empirical microeconomics: social experiments, natural experiments, matching, instrumental variables, discontinuity design, and control functions. It discusses identification of traditionally used average parameters and more complex distributional parameters. The adequacy, assumptions, and data requirements of each approach are discussed drawing on empirical evidence from the education and employment policy evaluation literature. A workhorse simulation model of education returns is used throughout the paper to discuss and illustrate each approach. The full set of STATA datasets and do-files are available free online and can be used to reproduce all estimation and simulation results.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 3800

Classification and Topics

• Classification: Wirtschaft ; Model Evaluation, Validation, and Selection
• Subject: Evaluation methods ; Mikroökonometrie ; Test ; Wirtschaftspolitik ; Wirkungsanalyse ; Bewertung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Blundell, Richard W. ; Dias, Monica Costa
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/35767
• URN: urn:nbn:de:101:1-20081126754
• Last update: 10.03.2025, 11:43 AM CET