Interpreting Unconditional Quantile Regression with Conditional Independence

Year: 
2019
Working Paper Number: 
WP 19-12
Abstract: 

This note provides additional interpretation for the counterfactual outcome distribution and corresponding "effects" defined and estimated by Firpo, Fortin, and Lemieux (2009) and Chernozhukov, Fernández-Val, and Melly (2013).  With conditional independence of the policy variable of interest, these methods estimate the policy effect for certain types of policies, but not others: the policy change itself must also satisfy conditional independence.

JEL Codes: 
C21
Authors: 
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