# Fitting the Local Average Response Function

### Description

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

.

### Usage

1 |

### 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 |

`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`