Sharp IV Bounds on Average Treatment Effects on the Treated and Other Populations Under Endogeneity and Noncompliance

Journal
Journal of Applied Econometrics
ISSN
0883-7252
ISSN-Digital
1099-1255
Type
journal article
Date Issued
2017-01
Author(s)
;
Laffers, Lukas
;
Mellace, Giovanni
DOI
Abstract
In the presence of an endogenous binary treatment and a valid binary instrument, causal effects are point identified only for the subpopulation of compliers, given that the treatment is monotone in the instrument. With the exception of the entire population, causal inference for further subpopulations has been widely ignored in econometrics. We invoke treatment monotonicity and/or dominance assumptions to derive sharp bounds on the average treatment effects on the treated, as well as on other groups. Furthermore, we use our methods to assess the educational impact of a school voucher program in Colombia and discuss testable implications of our assumptions.
Language
English
Keywords
instrument
noncompliance
principal stratification
nonparametric bounds.
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley-Blackwell
Publisher place
Chichester
Volume
32
Number
1
Start page
56
End page
79
URL
Subject(s)

economics

Division(s)

SEW - Swiss Institute...

Eprints ID
70304
File(s)
Thumbnail Image

open.access

Name

HuberLaffersMellace_IV_bounds_ main.pdf

Size

386.21 KB

Format

Adobe PDF

Checksum (MD5)

40319e482faedcad9aa85f21bf44f681

Thumbnail Image
Name

HuberLaffersMellace_IV_bounds_Online_Appendix.pdf

Size

447.52 KB

Format

Adobe PDF

Checksum (MD5)

b91d03901986533306c332b809d3d750