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Causal Inference and the Heckman Model

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  • Derek C. Briggs

Abstract

In the social sciences, evaluating the effectiveness of a program or intervention often leads researchers to draw causal inferences from observational research designs. Bias in estimated causal effects becomes an obvious problem in such settings. This article presents the Heckman Model as an approach sometimes applied to observational data for the purpose of estimating an unbiased causal effect and shows how the Heckman Model can be used to correct for the problem of selection bias. It discusses in detail the assumptions necessary before the approach can be used to make causal inferences. The Heckman Model makes assumptions about the relationship between two equations in an underlying behavioral model: a response schedule and a selection function. This article shows that the Heckman Model is particularly sensitive to the choice of variables included in the selection function. This is demonstrated empirically in the context of estimating the effect of commercial coaching programs on the SAT performance of high school students. Coaching effects for both sections of the SAT are estimated using data from the National Education Longitudinal Study of 1988. Small changes in the selection function are shown to have a big impact on estimated coaching effects under the Heckman Model.

Suggested Citation

  • Derek C. Briggs, 2004. "Causal Inference and the Heckman Model," Journal of Educational and Behavioral Statistics, , vol. 29(4), pages 397-420, December.
  • Handle: RePEc:sae:jedbes:v:29:y:2004:i:4:p:397-420
    DOI: 10.3102/10769986029004397
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    Cited by:

    1. Christian Bjørnskov & Stefan Voigt, 2022. "Terrorism and emergency constitutions in the Muslim world," Journal of Peace Research, Peace Research Institute Oslo, vol. 59(3), pages 305-318, May.
    2. Kleczyk, Ewa J. & Bosch, Darrell J., 2006. "Causal Factors and Costs of Home Plumbing Corrosion: An Investigation of Sample Selection Bias," 2006 Annual meeting, July 23-26, Long Beach, CA 21476, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Sunil Mithas & M. S. Krishnan, 2009. "From Association to Causation via a Potential Outcomes Approach," Information Systems Research, INFORMS, vol. 20(2), pages 295-313, June.
    4. Deka, Devajyoti, 2013. "An explanation of the relationship between adults’ work trip mode and children’s school trip mode through the Heckman approach," Journal of Transport Geography, Elsevier, vol. 31(C), pages 54-63.
    5. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    6. K.S. Aditya & S.P. Subash & K.V. Praveen & M.L. Nithyashree & N. Bhuvana & Akriti Sharma, 2017. "Awareness about Minimum Support Price and Its Impact on Diversification Decision of Farmers in India," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(3), pages 514-526, September.
    7. Chiaraah Anthony & Mahama Inusah, 2017. "Willingness of Local Rice Producers to Supply and Participate in the Ghana School Feeding Programme Market: A Case Study of Selected Districts in Northern Ghana," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(11), pages 257-271, 11-2017.
    8. Blazy, Régis & Letaief, Aziza, 2017. "When secured and unsecured creditors recover the same: The emblematic case of the Tunisian corporate bankruptcies," Emerging Markets Review, Elsevier, vol. 30(C), pages 19-41.
    9. Theodore Eisenberg & Michael Heise, 2009. "Plaintiphobia in State Courts? An Empirical Study of State Court Trials on Appeal," The Journal of Legal Studies, University of Chicago Press, vol. 38(1), pages 121-155, January.
    10. Régis Blazy & Joël Petey & Laurent Weill, 2018. "Serving the creditors after insolvency filings: from value creation to value distribution," European Journal of Law and Economics, Springer, vol. 45(2), pages 331-375, April.
    11. ter Braak, Anne & Deleersnyder, Barbara & Geyskens, Inge & Dekimpe, Marnik G., 2013. "Does private-label production by national-brand manufacturers create discounter goodwill?," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 343-357.

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