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Heterogeneous treatment effects: Instrumental variables without monotonicity?

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  • Klein, Tobias J.

Abstract

Imbens and Angrist (1994) were the first to exploit a monotonicity condition in order to identify a local average treatment effect parameter using instrumental variables. More recently, Heckman and Vytlacil (1999) suggested the estimation of a variety of treatment effect parameters using a local version of their approach. We investigate the sensitivity of the respective estimates to random departures from monotonicity. Approximations to the respective bias terms are derived. In an empirical application the bias is calculated and bias corrected estimates are obtained. The accuracy of the approximation is investigated in a Monte Carlo study.

Suggested Citation

  • Klein, Tobias J., 2010. "Heterogeneous treatment effects: Instrumental variables without monotonicity?," Journal of Econometrics, Elsevier, vol. 155(2), pages 99-116, April.
    • Handle: RePEc:eee:econom:v:155:y:2010:i:2:p:99-116
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    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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