TY  - RPRT
        AU  - Nizalova, Olena Y.
AU  - Murtazashvili, Irina
        TI  - Exogenous Treatment and Endogenous Factors: Vanishing of Omitted Variable Bias on the Interaction Term
        PY  - 2012/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 6282
        UR  - https://www.iza.org/publications/dp6282
        AB  - Whether interested in the differential impact of a particular factor in various institutional settings or in the heterogeneous effect of policy or random experiment, the empirical researcher confronts a problem if the factor of interest is correlated with an omitted variable. This paper considers circumstances under which the estimate of the mentioned effect is consistent. We find that if the source of heterogeneity and omitted variable are jointly independent of policy or treatment, then the OLS estimate on the interaction term between the treatment and endogenous factor turns out to be consistent.
        KW  - treatment effect
KW  - heterogeneity
KW  - policy evaluation
KW  - random experiments
KW  - omitted variable bias
        ER  -