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Unformatted text preview: ctors, fake respondents Falk, Armin, Ernst Fehr and Christian Zehnder, “Fairness Perceptions and Reservation
Wages—the Behavioral Effects of Minimum Wage Laws,” Quarterly Journal of
Economics, Vol. 121 (November 2008), 1347-1381 But these are informative, but often small scale (because of costs) and offer variable
scope for generalization Rise the issue of external validity Rise the issue of importance of question addressed Back to observational data, what about naïve regression analysis (i.e control for
confounding variables)? Controlling for innate ability may reduce the upward bias in returns to schooling
if higher ability individuals become more schooled Reduces omitted variable bias, but by how much??? Still suffer from reverse causality problem Fortin – Econ 560 Lecture 0 In the absence of a true experimental design, more econometrics that appeal to a clear
source of identification (research design) can help Quasi-natural Experiments (QE): Differences-in-Differences estimation Card, D. “The Impact of the Mariel Boatlift on the Miami Labor Market," Industrial Labor
Relations Review, Vol. 43 (January 1990): 245-257. Instrumental Variables (IV) Angrist, J.D. (1990) “Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from
Social Security Administrative Records,” American Economic Review, 85: 1065--1087. Angrist J. and Alan Krueger, “Does Compulsory School Attendance Affect Schooling and
Earnings?" Quarterly Journal of Economics, Vol 106 (Nov. 1991) 979-1014. Regression Discontinuity Designs (RDD) Oreopoulos, Phil. “Estimating Average and Local Average Treatment Effects of Education
when Compulsory School Laws Really Matter”, American Economic Review, Vol. 96 (Mar.,
2006) 152-175. Fortin – Econ 560 Lecture 0 Structural estimation attempts to recover the primitives of economic theory
(parameters determining preferences or technology)
o e.g. estimates of “the” elasticity of labour supply
o can be added to a natural or a field experiment to analyze the impact of changing
the parameters of the policy experiment Duflo, Esther, Rema Hanna, and Stephen P. Ryan, “Incentives Work: Getting Teachers to
Come to Scho...
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This document was uploaded on 02/26/2014 for the course ECON 560 at The University of British Columbia.
- Fall '13