Comparing IV With Structural Models: What Simple IV Can and Cannot Identify.

@article{Heckman2010ComparingIW,
  title={Comparing IV With Structural Models: What Simple IV Can and Cannot Identify.},
  author={James J. Heckman and Sergio S Urzua},
  journal={Journal of econometrics},
  year={2010},
  volume={156 1},
  pages={27-37}
}
This paper compares the economic questions addressed by instrumental variables estimators with those addressed by structural approaches. We discuss Marschak's Maxim: estimators should be selected on the basis of their ability to answer well-posed economic problems with minimal assumptions. A key identifying assumption that allows structural methods to be more informative than IV can be tested with data and does not have to be imposed. 
Highly Influential
This paper has highly influenced 12 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS

2 Figures & Tables