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Identification of Treatment Effects on the Treated with One-Sided Non-Compliance

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  • Markus Frölich
  • Blaise Melly

Abstract

Traditional instrumental variable estimators do not generally estimate effects for the treated population but for the unobserved population of compliers. On the other hand, when there is one-sided non-compliance, they do identify effects for the treated because the populations of treated and compliers are identical in this case. However, this property is lost when covariates are included in the model . In this case, we show that the effects for the treated are still identified but require modified estimators. We consider both average and quantile treatment effects and allow the instrument to be discrete or continuous.

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  • Markus Frölich & Blaise Melly, 2013. "Identification of Treatment Effects on the Treated with One-Sided Non-Compliance," Econometric Reviews, Taylor & Francis Journals, vol. 32(3), pages 384-414, November.
    • Handle: RePEc:taf:emetrv:v:32:y:2013:i:3:p:384-414
    DOI: 10.1080/07474938.2012.718684
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    5. Huber, Martin & Wüthrich, Kaspar, 2017. "Evaluating local average and quantile treatment effects under endogeneity based on instruments: a review," FSES Working Papers 479, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
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    7. Stephen G. Donald & Yu-Chin Hsu & Robert P. Lieli, 2010. "Inverse Propensity Score Weighted Estimation of Local Average Treatment Effects and a Test of the Unconfoundedness Assumption," CEU Working Papers 2012_9, Department of Economics, Central European University, revised 11 Aug 2010.
    8. Kaspar Wüthrich, 2020. "A Comparison of Two Quantile Models With Endogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 38(2), pages 443-456, April.
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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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