Late again, whithout Monotonicity
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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- repec:hal:wpaper:halshs-00699646 is not listed on IDEAS
- Clément De Chaisemartin & Xavier D'Haultfoeuille, 2012. "Late Again with Defiers," PSE Working Papers halshs-00699646, HAL.
- 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.
- Abadie, Alberto, 2003. "Semiparametric instrumental variable estimation of treatment response models," Journal of Econometrics, Elsevier, vol. 113(2), pages 231-263, April.
- Kevin Lang & Rashmi Barua, 2010.
"School Entry, Educational Attainment and Quarter of Birth: A Cautionary Tale of LATE,"
Boston University - Department of Economics - Working Papers Series
WP2010-019, Boston University - Department of Economics.
- 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.
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