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Late again, whithout Monotonicity

  • Clément de Chaisemartin


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    Monotonicity is not necessary for the Wald ratio to identify a Local Average Treatment Effect. Under random assignment and exclusion restriction, if for every value of potential outcomes there are more compliers than defiers, the Wald ratio identifies the average treatment effect within a subpopulation of compliers. I use a simple Roy selection model to show that this "less defiers than compliers" condition is substantially weaker than monotonicity. It has two implications which are testable from the data, and it is closely related to those testable implications. Similarly, the local monotonicity condition in Huber & Mellace (2012) is not necessary for their identification results to hold and can also be replaced by a substantially weaker condition

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    Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2012-12.

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    Length: 19
    Date of creation: Jun 2012
    Date of revision:
    Handle: RePEc:crs:wpaper:2012-12
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    1. Clément De Chaisemartin & Xavier D'Haultfoeuille, 2012. "Late Again with Defiers," PSE Working Papers halshs-00699646, HAL.
    2. Rashmi Barua & Kevin Lang, 2009. "School Entry, Educational Attainment and Quarter of Birth: A Cautionary Tale of LATE," NBER Working Papers 15236, National Bureau of Economic Research, Inc.
    3. Abadie, Alberto, 2003. "Semiparametric instrumental variable estimation of treatment response models," Journal of Econometrics, Elsevier, vol. 113(2), pages 231-263, April.
    4. Huber, Martin & Mellace, Giovanni, 2012. "Relaxing monotonicity in the identification of local average treatment effects," Economics Working Paper Series 1212, University of St. Gallen, School of Economics and Political Science.
    5. repec:hal:wpaper:halshs-00699646 is not listed on IDEAS
    6. Klein, T.J., 2008. "Heterogeneous Treatment Effects : Instrumental Variables Without Monotonicity?," Discussion Paper 2008-45, Tilburg University, Center for Economic Research.
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