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Estimating ATT Effects with Non-Experimental Data and Low Compliance

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  • Angelucci, Manuela

    ()
    (University of Michigan)

  • Attanasio, Orazio

    ()
    (University College London)

Abstract

In this paper we discuss several methodological issues related to the identification and estimation of Average Treatment on the Treated (ATT) effects in the presence of low compliance. We consider non-experimental data consisting of a treatment group, where a program is implemented, and of a control group that is non-randomly drawn, where the program is not offered. Estimating the ATT involves tackling both the non-random assignment of the program and the non-random participation among treated individuals. We argue against standard matching approaches to deal with the latter issue because they are based on the assumption that we observe all variables that determine both participation and outcome. Instead, we propose an IV-type estimator which exploits the fact that the ATT can be expressed as the Average Intent to Treat divided by the participation share, in the absence of spillover effects. We propose a semi-parametric estimator that couples the flexibility of matching estimators with a standard Instrumental Variable approach. We discuss the different assumptions necessary for the identification of the ATT with each of the two approaches, and we provide an empirical application by estimating the effect of the Mexican conditional cash transfer program, Oportunidades, on food consumption.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2368.

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Length: 28 pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2368

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Keywords: program evaluation; treatment effects;

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References

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  1. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers, University of Western Ontario, CIBC Centre for Human Capital and Productivity 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  2. James Heckman & Jeffrey Smith & Christopher Taber, 1998. "Accounting For Dropouts In Evaluations Of Social Programs," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 1-14, February.
  3. Hoddinott, John & Skoufias, Emmanual, 2003. "The impact of Progresa on food consumption," FCND discussion papers, International Food Policy Research Institute (IFPRI) 150, International Food Policy Research Institute (IFPRI).
  4. Robert J. LaLonde, 1995. "The Promise of Public Sector-Sponsored Training Programs," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 149-168, Spring.
  5. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, Econometric Society, vol. 62(2), pages 467-75, March.
  6. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0136, National Bureau of Economic Research, Inc.
  7. Abadie, Alberto, 2003. "Semiparametric instrumental variable estimation of treatment response models," Journal of Econometrics, Elsevier, Elsevier, vol. 113(2), pages 231-263, April.
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Cited by:
  1. Asadul Islam Author-X-Name-Asadul, 2008. "Who Benefits From Microfinance? The Impact Evaluation Of Large Scale Programs In Bangladesh," Development Research Unit Working Paper Series, Monash University, Department of Economics 29/08, Monash University, Department of Economics.
  2. Crombrugghe Denis de & Espinoza Henry & Heijke Hans, 2010. "Job-training programmes with low completion rates: The case of Projoven-Peru," ROA Research Memorandum, Maastricht University, Research Centre for Education and the Labour Market (ROA) 004, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  3. Manuela Angelucci & Orazio Attanasio, 2009. "Oportunidades: Program Effect on Consumption, Low Participation, and Methodological Issues," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 57(3), pages 479-506, 04.
  4. Pettersson, Jan & Wikström, Johan, 2013. "Peeing out of poverty? Human fertilizer and the productivity of farming households," Working Paper Series, Uppsala University, Department of Economics 2013:1, Uppsala University, Department of Economics.

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