Fitting the Local Average Response Function

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Description

It is the work-horse function for its high-level interface larf.

Usage

1
larf.fit(Y, X, D, Z, method, AME, optimizer, zProb)

Arguments

Y

a vector containing the outcome.

X

a matrix containing the covariates excluding the treatment.

D

a vector containing the binary treatment.

Z

a vector containing the binary instrument for the endogenous treatment.

method

the estimation method to be used. The default is “LS", standing for least squares. “ML", standing for maximum likelihood, is an alternative.

AME

whether average marginal effects (AME) should be reported. The default is FALSE, in which case marginal effects at the means (MEM) are reported.

optimizer

the optimization algorithm for the ML method. It should be one of “Nelder-Mead", “BFGS", “CG", “L-BFGS-B", “SANN", or “Brent". See optim in R for more detail.

zProb

a vector containing the probability of receiving the treatment inducement (i.e., instrument = 1) that have been estimated by semiparametrical methods.

Author(s)

Weihua An and Xuefu Wang, Departments of Sociology and Statistics, Indiana University Bloomington

See Also

larf, c401k