Partial Identification of Local Average Treatment Effects with an Invalid Instrument
We derive nonparametric bounds for local average treatment effects without requiring the exclusion restriction assumption to hold or an outcome with a bounded support. Instead, we employ assumptions requiring weak monotonicity of mean potential outcomes within or across subpopulations defined by the values of the potential treatment status under each value of the instrument. We illustrate the identifying power of the bounds by analyzing the effect of attaining a GED, high school, or vocational degree on subsequent employment and weekly earnings using randomization into a training program as an invalid instrument.
|Date of creation:||Sep 2010|
|Date of revision:|
|Publication status:||Forthcoming: Under review|
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- Alfonso Flores-Lagunes & Audrey Light, 2010.
"Interpreting Degree Effects in the Returns to Education,"
Journal of Human Resources,
University of Wisconsin Press, vol. 45(2).
- Flores-Lagunes, Alfonso & Light, Audrey, 2009. "Interpreting Degree Effects in the Returns to Education," IZA Discussion Papers 4169, Institute for the Study of Labor (IZA).
- Frölich, Markus, 2002.
"Nonparametric IV Estimation of Local Average Treatment Effects with Covariates,"
IZA Discussion Papers
588, Institute for the Study of Labor (IZA).
- Frolich, Markus, 2007. "Nonparametric IV estimation of local average treatment effects with covariates," Journal of Econometrics, Elsevier, vol. 139(1), pages 35-75, July.
- Markus Froelich, 2002. "Nonparametric IV estimation of local average treatment effects with covariates," University of St. Gallen Department of Economics working paper series 2002 2002-19, Department of Economics, University of St. Gallen.
- Alfonso Flores-Lagunes & Arturo Gonzalez & Todd Neumann, 2010. "Learning But Not Earning? The Impact Of Job Corps Training On Hispanic Youth," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 651-667, 07.
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