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Average causal response with variable treatment intensity

Author

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  • Angrist, J.D.
  • Imbens, G.W.

    (Tilburg University, Center For Economic Research)

Abstract

In evaluation research, an average causal effect is usually defined as the expected difference between the outcomes of the treated, and what these outcomes would have been in the absence of treatment. This definition of causal effects makes sense for binary treatments only. In this paper, we extend the definition of average causal effects to the case of variable treatments such as drug dosage, hours of exam preparation, cigarette smoking, and years of schooling. We show that given mild regularity assumptions, instrumental variables independence assumptions identify a weighted average of per-unit causal effects along the length of an appropriately defined causal response function. Conventional instrumental variables and Two-Stage Least Squares procedures can be interpreted as estimating the average causal response to a variable treatment.
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Suggested Citation

  • Angrist, J.D. & Imbens, G.W., 1992. "Average causal response with variable treatment intensity," Discussion Paper 1992-34, Tilburg University, Center for Economic Research.
    • Handle: RePEc:tiu:tiucen:5f026d94-0b02-4d7e-b5b0-07998949fefc
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    References listed on IDEAS

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    8. Angrist, Joshua D, 1990. "Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records: Errata," American Economic Review, American Economic Association, vol. 80(5), pages 1284-1286, December.
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    Keywords

    Evaluation; Treatment;

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