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Evaluating Marginal Policy Changes and the Average Effect of Treatment for Individuals at the Margin

Year: 2010
Type: article
Abstract: This paper develops methods for evaluating marginal policy changes. We characterize how the effects of marginal policy changes depend on the direction of the policy change, and show that marginal policy effects are fundamentally easier to identify and to estimate than conventional treatment parameters. We develop the connection between marginal policy effects and the average effect of treatment for persons on the margin of indifference between participation in treatment and nonparticipation, and use this connection to analyze both parameters. We apply our analysis to estimate the effect of marginal changes in tuition on the return to going to college.
Source: Econometrica
DOI: 10.3982/ecta7089
Institutions: Institute for Fiscal Studies, University College London, University College Dublin, American Bar Foundation, Yale University, University of Chicago
Language: English
Open Access status: green
Awards: The Centre for Microdata Methods and Practice (CEMMAP), G2083237146, G2742888644, DETERMINANTS AND CONSEQUENCES OF SCHOOLING AND ABILITIES, The Importance of Accounting for Composition Effects When Studying Changes in Wage Inequality, G4519096263, G5721303433
OpenAlex ID: W2136935249
FWCI: 8.015
Cites: 20
Cited by: 131
Related to: 10