The Generalized Roy Model and the Cost-Benefit Analysis of Social Programs

S-Tier
Journal: Journal of Political Economy
Year: 2015
Volume: 123
Issue: 2
Pages: 413 - 443

Authors (3)

Philipp Eisenhauer (not in RePEc) James J. Heckman (University of Chicago) Edward Vytlacil (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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 costs. We apply our methodology to estimate the gross benefit and net surplus of attending college.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/679498
Journal Field
General
Author Count
3
Added to Database
2026-02-02