Economics 1629 LECTURE 16: Instrumental Variables

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Presentation transcript:

Economics 1629 LECTURE 16: Instrumental Variables Daniel Björkegren danbjork@brown.edu

Does your mother’s health while your in the womb determine your life outcomes? (Almond 2006)

Other differences? Some children may not have made it Would imply that the stronger survive

Heart attack treatment survival = 0 + 1 intens_treatment + 2female + 3black +4urban + u where: survival: dummy variable indicating whether the patient survived for at least one year after the heart attack (yes=1) intens_treatment: dummy variable indicating whether the patient had received intensive treatment (defined as cardiac catheterization) after experiencing heart attack (yes=1) female: dummy variable indicating whether individual is a female black: dummy variable indicating whether individual is African American urban: dummy variable indicating whether individual lives in an urban area

For Monday: How does hiring police affect crime rates? Read: Levitt 1997: Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime Send 3 discussion points to: econresponse+1629@gmail.com