Beyond LATE with a discrete instrument

Christian N. Brinch, Magne Mogstad, Matthew Wiswall

Research output: Contribution to journalArticlepeer-review

40 Scopus citations

Abstract

We show how a discrete instrument can be used to identify the marginal treatment effects under a functional structure that allows for treatment heterogeneity among individuals with the same observed characteristics and self-selection based on the unobserved gain from treatment. Guided by this identification result, we perform a marginal treatment effect analysis of the interaction between the quantity and quality of children. Our estimates reveal that the family size effects vary in magnitude and even sign and that families act as if they possess some knowledge of the idiosyncratic effects in the fertility decision.

Original languageEnglish (US)
Pages (from-to)985-1039
Number of pages55
JournalJournal of Political Economy
Volume125
Issue number4
DOIs
StatePublished - 2017

ASJC Scopus subject areas

  • Economics and Econometrics

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