Title: Collusion in Repeated Auctions and the Role of Communication
Abstract: Recently, much research has focused on determining critical and sensitive periods in child development. In this context, the use of non-experimental data can lead to biased estimates if parental investments and human capital outcomes jointly depend on unobserved confounders. To deal with this problem, many studies relate so-called contextual variation, in the form of events that are exogenous from the point of view of the individual, to later human capital outcomes. Yet, being a child when a contextual shock materializes does not necessarily imply individual suffering, such that the average causal effect of early-life investments on the individual cannot be determined from contextual information alone. This paper explains how instrumental variable estimation can be use to obtain causal estimates from contextual variation and information about individual human capital in- *Department of Economics, University of Bonn, University of Bonn, Adenauerallee 24-42, D-53113 Bonn, Germany, e-mail: [email protected], phone: +49 228 73-9206 or +49 228 73-9238 (secretariat). *This article draws on earlier work with Gerard van den Berg and Johannes Schoch (see van den Berg, Pinger, and Schoch, 2014). I thank Jonas Dovern for valuable comments. 120 Contexts, Compliance and Imperfect Recall Vol III(2) vestments. It then discusses how combining information from two different samples can be used to compute causal effects in the presence of recall bias.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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