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Counterfactual Copula and Its Application to the Effects of College Education on Intergenerational Mobility

Tsung-Chih Lai, Jiun-Hua Su

arXiv 12 Mar 2023 · Econometrics

arXiv:2303.06658 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes a nonparametric estimator of the counterfactual copula of two outcome variables that would be affected by a policy intervention. The proposed estimator allows policymakers to conduct ex-ante evaluations by comparing the estimated counterfactual and actual copulas as well as their corresponding measures of association. Asymptotic properties of the counterfactual copula estimator are established under regularity conditions. These conditions are also used to validate the nonparametric bootstrap for inference on counterfactual quantities. Simulation results indicate that our estimation and inference procedures perform well in moderately sized samples. Applying the proposed method to studying the effects of college education on intergenerational income mobility under two counterfactual scenarios, we find that while providing some college education to all children is unlikely to promote mobility, offering a college degree to children from less educated families can significantly reduce income persistence across generations.

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37
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Rothe, C (2010) Nonparametric Estimation of Distributional Policy Effects0.9209478%
2Chetty, R., N. Hendren, P. Kline, and E. Saez (2014) Where Is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States0.73732100%
3Chetty, R., J. N. Friedman, E. Saez, N. Turner, and D. Yagan (2020) Income Segregation and Intergenerational Mobility across Colleges in the United States0.73732100%
4Torche, F (2011) Is a College Degree Still the Great Equalizer? Intergenerational Mobility across Levels of Schooling in the United States0.73732100%
5Segers, J (2012) Asymptotics of Empirical Copula Processes under Non-restrictive Smoothness Assumptions0.64441100%
6Chernozhukov, V., I. Fernández-Val, and B. Melly (2013) Inference on Counterfactual Distributions0.64422100%
7Hsu, Y.-C., T.-C. Lai, and R. P. Lieli (2022) Counterfactual Treatment Effects: Estimation and Inference self0.64422100%
8Bücher, A. and S. Volgushev (2013) Empirical and Sequential Empirical Copula Processes under Serial Dependence0.51121100%
9Deheuvels, P (1979) La fonction de dépendance empirique et ses propriétés0.51121100%
10Hungerford, T. and G. Solon (1987) Sheepskin Effects in the Returns to Education0.51121100%

Showing the top 10 of 37 scored citations.