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Simple Estimators for Treatment Parameters in a Latent-Variable Framework

By James Heckman, Justin L. Tobias and Edward Vytlacil

Abstract

This note derives simply computed closed-form expressions for the average treatment effect, the effect of treatment on the treated, the local average treatment effect, and the marginal treatment effect in a latent-variable framework for both normal and nonnormal models. Asymptotic standard errors for versions of these parameters that average over observed characteristics are also obtained. The performances of the derived estimators are also evaluated in Monte Carlo experiments under correct specification and misspecification. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

DOI identifier: 10.1162/003465303322369867
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