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Identifying the effects of a program offer with an application to Head Start

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  • Kamat, Vishal

Abstract

I propose a treatment selection model that introduces unobserved heterogeneity in both choice sets and preferences to evaluate the average effects of a program offer. I show how to exploit the model structure to define parameters capturing these effects and then computationally characterize their identified sets under instrumental variable variation in choice sets. I illustrate these tools by analyzing the effects of providing an offer to the Head Start preschool program using data from the Head Start Impact Study. I find that such a policy affects a large number of children who take up the offer, and that they subsequently have positive effects on test scores. These effects arise from children who do not have any preschool as an outside option. A cost–benefit analysis reveals that the earning benefits associated with the test score gains can be large and outweigh the net costs associated with offer take up.

Suggested Citation

  • Kamat, Vishal, 2024. "Identifying the effects of a program offer with an application to Head Start," Journal of Econometrics, Elsevier, vol. 240(1).
    • Handle: RePEc:eee:econom:v:240:y:2024:i:1:s0304407624000253
    DOI: 10.1016/j.jeconom.2024.105679
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    More about this item

    Keywords

    Program offer; Discrete choice; Unobserved choice sets; Instrumental variables; Partial identification; Randomized experiments; Head start impact study;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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