The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs.
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ABSTRACT:
SUBMITTER: Eisenhauer P
PROVIDER: S-EPMC4689211 | biostudies-literature | 2015 Apr
REPOSITORIES: biostudies-literature
Publications
The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs.
Eisenhauer Philipp P Heckman James J JJ Vytlacil Edward E
The journal of political economy 20150401 2
The literature on treatment effects focuses on gross benefits from program participation. We extend this literature by developing conditions under which it is possible to identify parameters measuring the cost and net surplus from program participation. Using the generalized Roy model, we nonparametrically identify the cost, benefit, and net surplus of selection into treatment without requiring the analyst to have direct information on the cost. We apply our methodology to estimate the gross ben ...[more]
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