Endogeneity and non‐response bias in treatment evaluation – nonparametric identification of causal effects by instruments
Journal
Journal of Applied Econometrics
ISSN-Digital
1099-1255
Type
journal article
Date Issued
2020-04
Author(s)
Abstract
This paper proposes a nonparametric method for evaluating treatment effects in the presence of both treatment endogeneity and attrition/non‐response bias, based on two instrumental variables. Using a discrete instrument for the treatment and an instrument with rich (in general continuous) support for non‐response/attrition, we identify the average treatment effect on compliers as well as the total population under the assumption of additive separability of observed and unobserved variables affecting the outcome. We suggest non‐ and semiparametric estimators and apply the latter to assess the treatment effect of gym training, which is instrumented by a randomized cash incentive paid out conditional on visiting the gym, on self‐assessed health among students at a Swiss university. The measurement of health is prone to non‐response, which is instrumented by a cash lottery for participating in the follow‐up survey.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Wiley Online Library
Volume
35
Number
5
Start page
481
End page
504
Pages
24
Subject(s)
Eprints ID
260319