Local Average Response Functions
This page contains Matlab code to compute least squares approximations
to a local average response function, as defined in Abadie (2003), "Semiparametric
Instrumental Variable Estimation of Treatment Response Models," Journal
of Econometrics, vol. 113(2), 231-263. The second step can be specified
as linear or as probit (see equations (7) and (8) in the article). The first
step is carried-out parametrically, using a Probit estimator. Standard Errors
are calculated using the techniques in section 4.3.1 in the article.
For usage, open Matlab in a directory that has access to the files and type
"help cls" or "help clsprobit" on the command line.
Updated 09/20/03