IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Identification region of the potential outcome distributions under instrument independence

  • Toru Kitagawa

    ()

    (Institute for Fiscal Studies and UCL)

Registered author(s):

    This paper examines identification power of the instrument exogeneity assumption in the treatment effect model. We derive the identification region: The set of potential outcome distributions that are compatible with data and the model restriction. The model restrictions whose identifying power is investigated are (i)instrument independence of each of the potential outcome (marginal independence), (ii) instrument joint independence of the potential outcomes and the selection heterogeneity, and (iii) instrument monotonicity in addition to (ii) (the LATE restriction of Imbens and Angrist (1994)), where these restrictions become stronger in the order of listing. By comparing the size of the identification region under each restriction, we show that the joint independence restriction can provide further identifying information for the potential outcome distributions than marginal independence, but the LATE restriction never does since it solely constrains the distribution of data. We also derive the tightest possible bounds for the average treatment effects under each restriction. Our analysis covers both the discrete and continuous outcome case, and extends the treatment effect bounds of Balke and Pearl(1997) that are available only for the binary outcome case to a wider range of settings including the continuous outcome case.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://cemmap.ifs.org.uk/wps/cwp3009.pdf
    Download Restriction: no

    Paper provided by Centre for Microdata Methods and Practice, Institute for Fiscal Studies in its series CeMMAP working papers with number CWP30/09.

    as
    in new window

    Length:
    Date of creation: Oct 2009
    Date of revision:
    Handle: RePEc:ifs:cemmap:30/09
    Contact details of provider: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
    Phone: (+44) 020 7291 4800
    Fax: (+44) 020 7323 4780
    Web page: http://cemmap.ifs.org.uk
    Email:


    More information through EDIRC

    Order Information: Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
    Email:


    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ifs:cemmap:30/09. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Seavers)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.