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Economics 1629 LECTURE 16: Instrumental Variables

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Presentation on theme: "Economics 1629 LECTURE 16: Instrumental Variables"— Presentation transcript:

1 Economics 1629 LECTURE 16: Instrumental Variables
Daniel Björkegren

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

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

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9 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

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11 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:


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