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Interpreting TSLS Estimators in Information Provision Experiments

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  • Vod Vilfort
  • Whitney Zhang

Abstract

In information provision experiments, researchers often estimate the causal effects of beliefs on actions using two-stage least squares (TSLS). This paper formalizes exclusion and monotonicity conditions that ensure that TSLS recovers a positive-weighted average of causal effects. We assess common TSLS estimators for both passive and active control designs from the literature; we find that two commonly used passive control estimators generally allow for negative weights. The choice of passive control estimator affects the magnitude and significance of estimates in simulations and in an empirical application. We give practical recommendations for addressing these issues.

Suggested Citation

  • Vod Vilfort & Whitney Zhang, 2025. "Interpreting TSLS Estimators in Information Provision Experiments," American Economic Review: Insights, American Economic Association, vol. 7(3), pages 376-395, September.
    • Handle: RePEc:aea:aerins:v:7:y:2025:i:3:p:376-95
    DOI: 10.1257/aeri.20240353
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    1. Antoine Dechezleprêtre & Adrien Fabre & Tobias Kruse & Bluebery Planterose & Ana Sanchez Chico & Stefanie Stantcheva, 2025. "Fighting Climate Change: International Attitudes toward Climate Policies," American Economic Review, American Economic Association, vol. 115(4), pages 1258-1300, April.
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    Cited by:

    1. Klaus Gründler & Michael Lamla & Niklas Potrafke & Timo Wochner, 2026. "Experts as Intermediaries," CESifo Working Paper Series 12492, CESifo.

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    More about this item

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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