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Convex Treatment Response and Treatment Selection

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  • Stefan Boes

    ()
    (Socioeconomic Institute, University of Zurich)

Abstract

This paper analyzes the identifying power of weak convexity assumptions in treatment effect models with endogenous selection. The counterfactual distributions are constrained either in terms of the response function, or conditional on the realized treatment, and sharp bounds on the potential outcome distributions are derived. The methods are applied to bound the effect of education on smoking.

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File URL: http://www.soi.uzh.ch/research/wp/2010/wp1001.pdf
File Function: first version, 2010
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Bibliographic Info

Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 1001.

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Length: 28 pages
Date of creation: Jan 2010
Date of revision:
Handle: RePEc:soz:wpaper:1001

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Keywords: nonparametric bounds; causality; endogeneity; instrumental variables;

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References

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  1. Blundell, Richard & Gosling, Amanda & Ichimura, Hidehiko & Meghir, Costas, 2004. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," IZA Discussion Papers 1350, Institute for the Study of Labor (IZA).
  2. Farrell, Phillip & Fuchs, Victor R. & Fuchs, Victor R., 1982. "Schooling and health : The cigarette connection," Journal of Health Economics, Elsevier, Elsevier, vol. 1(3), pages 217-230, December.
  3. Tsunao Okumura & Emiko Usui, 2014. "Concave‐monotone treatment response and monotone treatment selection: With an application to the returns to schooling," Quantitative Economics, Econometric Society, Econometric Society, vol. 5, pages 175-194, 03.
  4. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  5. Charles F. Manski & John V. Pepper, 1998. "Monotone Instrumental Variables with an Application to the Returns to Schooling," NBER Technical Working Papers 0224, National Bureau of Economic Research, Inc.
  6. Donald Kenkel & Dean Lillard & Alan Mathios, 2006. "The Roles of High School Completion and GED Receipt in Smoking and Obesity," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(3), pages 635-660, July.
  7. Franque Grimard & Daniel Parent, 2006. "Education And Smoking: Were Vietnam War Draft Avoiders Also More Likely To Avoid Smoking?," Departmental Working Papers, McGill University, Department of Economics 2006-05, McGill University, Department of Economics.
  8. Janet Currie & Enrico Moretti, 2003. "Mother'S Education And The Intergenerational Transmission Of Human Capital: Evidence From College Openings," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 118(4), pages 1495-1532, November.
  9. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(2), pages 287-305, April.
  10. repec:att:wimass:9604 is not listed on IDEAS
  11. Charles F. Manski & John V. Pepper, 2009. "More on monotone instrumental variables," Econometrics Journal, Royal Economic Society, Royal Economic Society, vol. 12(s1), pages S200-S216, 01.
  12. Rosenzweig, Mark R, 1995. "Why Are There Returns to Schooling?," American Economic Review, American Economic Association, American Economic Association, vol. 85(2), pages 153-58, May.
  13. Charles F. Manski, 1997. "Monotone Treatment Response," Econometrica, Econometric Society, Econometric Society, vol. 65(6), pages 1311-1334, November.
  14. Tenn, Steven & Herman, Douglas A. & Wendling, Brett, 2010. "The role of education in the production of health: An empirical analysis of smoking behavior," Journal of Health Economics, Elsevier, Elsevier, vol. 29(3), pages 404-417, May.
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Cited by:
  1. Okumura, Tsunao & Usui, Emiko, 2010. "Concave-Monotone Treatment Response and Monotone Treatment Selection: With an Application to the Returns to Schooling," PIE/CIS Discussion Paper, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University 475, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  2. Stefan Boes, 2011. "On the causal effect of schooling on smoking: evidence without exogeneity conditions," Diskussionsschriften, Universitaet Bern, Departement Volkswirtschaft dp1102, Universitaet Bern, Departement Volkswirtschaft.

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