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Lee (2009) treatment-effect bounds for nonrandom sample selection

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  • Harald Tauchmann

    (University of Erlangen-Nuremberg)

Abstract

Nonrandom sample selection may render estimated treatment effects biased even if assignment of treatment is purely random. Lee (2009, Review of Economic Studies, 76: 1071–1102) proposes an estimator for treatment-effect bounds that limit the possible range of the treatment effect. In this approach, the lower and upper bound correspond to extreme assumptions about the missing information that are consistent with the observed data. In contrast to conventional parametric approaches to correcting for sample-selection bias, Lee's bounds estimator rests on very few assumptions. I introduce the new command leebounds, which implements the estimator in Stata. The command allows for several options, such as tightening bounds by using covariates. Copyright 2014 by StataCorp LP.

Suggested Citation

  • Harald Tauchmann, 2014. "Lee (2009) treatment-effect bounds for nonrandom sample selection," Stata Journal, StataCorp LP, vol. 14(4), pages 884-894, December.
    • Handle: RePEc:tsj:stataj:v:14:y:2014:i:4:p:884-894
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    8. Barua, Rashmi & Shastry, Gauri Kartini & Yang, Dean, 2020. "Financial education for female foreign domestic workers in Singapore," Economics of Education Review, Elsevier, vol. 78(C).
    9. Francesca Molinari, 2020. "Microeconometrics with Partial Identification," Papers 2004.11751, arXiv.org.
    10. Ganguli, Ina & Gaulé, Patrick & Čugalj, Danijela Vuletić, 2022. "Chasing the academic dream: Biased beliefs and scientific labor markets," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 17-33.
    11. Iryna Demko & Ana Claudia Sant’Anna, 2023. "Impact of Race, Ethnicity, and Gender on the SBA Paycheck Protection Program (PPP) Loan Amounts," Economic Development Quarterly, , vol. 37(3), pages 211-229, August.
    12. Guigonan S. Adjognon & Daan van Soest & Jonas Guthoff, 2021. "Reducing Hunger with Payments for Environmental Services (PES): Experimental Evidence from Burkina Faso," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(3), pages 831-857, May.
    13. Francesca Molinari, 2019. "Econometrics with Partial Identification," CeMMAP working papers CWP25/19, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    14. Bold, Tessa & Barton, Nicholas & Sandefur, Justin, 2017. "Measuring Rents from Public Employment: Regression discontinuity evidence from Kenya," CEPR Discussion Papers 12105, C.E.P.R. Discussion Papers.
    15. Nicholas Barton & Tessa Bold & Justin Sandefur, 2017. "Measuring Rents from Public Employment: Regression Discontinuity Evidence from Kenya - Working Paper 457," Working Papers 457, Center for Global Development.
    16. Yang, Liyuan & Zikos, Vasileios, 2023. "Mental health and smoking behavior," Economic Modelling, Elsevier, vol. 126(C).

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