independent var. self-selection, continuous var. treatment

Econometrics questions and discussions
Davidp
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Joined: Sat Jul 28, 2007 4:58 pm

independent var. self-selection, continuous var. treatment

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I am trying to model the effect of a treatment (x-variable) on an outcome (y-variable), where the treatment is a self-selected, CONTINUOUS variable (e.g., hours of study, dollars spent, etc.), and the outcome is also continuous (performance). I am interested in the effect of the treatment on the outcome in the general population - not just the treatment sample. I observe y for the entire population (i.e., including those studying/spending, and those not). My treatment is either zero, or some positive value (lots of clustering at zero).

This doesn't seem to fit into the self-selection literature - which always focuses on selection on the y-variable, or into the treatment effects literature - which focuses on selection on a binary choice. Any thoughts?
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