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A note on bounding average treatment effects

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  • Lafférs, Lukáš
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    Abstract

    Imposing the monotone treatment selection (MTS) assumption and the monotone instrumental variable (MIV) assumption implies bounds on average treatment effect that differ from those commonly reported in the applied literature. Instead, for the bounds to be correct, we should use an MTS assumption conditional on the value of a monotone instrument (cMTS). In this paper, we present an empirical example of bounding the effect of the mother’s education on her children’s education, in which the MTS and cMTS assumptions lead to considerably different bounds on the treatment effects.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165176513002668
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    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 120 (2013)
    Issue (Month): 3 ()
    Pages: 424-428

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    Handle: RePEc:eee:ecolet:v:120:y:2013:i:3:p:424-428
    DOI: 10.1016/j.econlet.2013.05.029
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

    Keywords: Partial identification; Bounds; Average treatment effect;

    Find related papers by JEL classification:

    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • I2 - Health, Education, and Welfare - - Education

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    10. Brent Kreider & John V. Pepper & Craig Gundersen & Dean Jolliffe, 2012. "Identifying the Effects of SNAP (Food Stamps) on Child Health Outcomes When Participation Is Endogenous and Misreported," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 107(499), pages 958-975, September.
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