The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs

• 成果类型: Article
• 署名作者: Eisenhauer, Philipp; Heckman, James J.; Vytlacil, Edward
• 署名单位: University of Chicago; New York University
• 刊物名称: JOURNAL OF POLITICAL ECONOMY
• ISSN/ISSBN: 0022-3808
• DOI: 10.1086/679498
• 发表日期: 2015
• 页码: 413-443
• 关键词: instrumental variables; self-selection; identification; welfare; Heterogeneity; EQUATIONS; returns

摘要

The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on costs. We apply our methodology to estimate the gross benefit and net surplus of attending college.