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Trimming for Bounds on Treatment Effects with Missing Outcomes

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  • David S. Lee

Abstract

Empirical researchers routinely encounter sample selection bias whereby 1) the regressor of interest is assumed to be exogenous, 2) the dependent variable is missing in a potentially non-random manner, 3) the dependent variable is characterized by an unbounded (or very large) support, and 4) it is unknown which variables directly affect sample selection but not the outcome. This paper proposes a simple and intuitive bounding procedure that can be used in this context. The proposed trimming procedure yields the tightest bounds on average treatment effects consistent with the observed data. The key assumption is a monotonicity restriction on how the assignment to treatment effects selection -- a restriction that is implicitly assumed in standard formulations of the sample selection problem.

Suggested Citation

  • David S. Lee, 2002. "Trimming for Bounds on Treatment Effects with Missing Outcomes," NBER Technical Working Papers 0277, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberte:0277
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    References listed on IDEAS

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    1. Angrist, Joshua D., 1997. "Conditional independence in sample selection models," Economics Letters, Elsevier, vol. 54(2), pages 103-112, February.
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    14. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc.
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    Cited by:

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    2. Juan Sebastián Muñoz, 2014. "Re-estimating the Gender Gap in Colombian Academic Performance," IDB Publications (Working Papers) 4762, Inter-American Development Bank.
    3. Barr, Abigail & Bategeka, Lawrence & Guloba, Madina & Kasirye, Ibrahim & Mugisha, Frederick & Serneels, Pieter & Zeitlin, Andrew, 2012. "Management and motivation in Ugandan primary schools: an impact evaluation report," PEP Working Papers 164412, Partnership for Economic Policy (PEP).
    4. Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-161, May.
    5. Michael Kremer & Edward Miguel & Rebecca Thornton, 2009. "Incentives to Learn," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 437-456, August.
    6. Joshua Angrist & Eric Bettinger & Michael Kremer, 2004. "Long-Term Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," NBER Working Papers 10713, National Bureau of Economic Research, Inc.
    7. Philip Oreopoulos, 2003. "The Long-Run Consequences of Living in a Poor Neighborhood," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1533-1575.
    8. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.
    9. Rafael Lalive & Analía Schlosser & Andreas Steinhauer & Josef Zweimüller, 2014. "Parental Leave and Mothers' Careers: The Relative Importance of Job Protection and Cash Benefits," Review of Economic Studies, Oxford University Press, vol. 81(1), pages 219-265.
    10. Duflo, Esther & Glennerster, Rachel & Kremer, Michael, 2008. "Using Randomization in Development Economics Research: A Toolkit," Handbook of Development Economics, Elsevier.
    11. Juan Sebastian Munoz, 2014. "Re-estimating the Gender Gap in Colombian Academic Performance," Research Department Publications IDB-WP-469, Inter-American Development Bank, Research Department.
    12. David S. Lee, 2005. "Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects," NBER Working Papers 11721, National Bureau of Economic Research, Inc.
    13. Guido W. Imbens & Charles F. Manski, 2004. "Confidence Intervals for Partially Identified Parameters," Econometrica, Econometric Society, vol. 72(6), pages 1845-1857, November.
    14. repec:eee:wdevel:v:105:y:2018:i:c:p:189-200 is not listed on IDEAS
    15. John DiNardo & David S. Lee, 2002. "The Impact of Unionization on Establishment Closure: A Regression Discontinuity Analysis of Representation Elections," NBER Working Papers 8993, National Bureau of Economic Research, Inc.
    16. Gustavo J. Bobonis & Edward Miguel & Charu Puri-Sharma, 2006. "Anemia and School Participation," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    17. Fiala, Nathan, 2014. "Economic Consequences of Forced Displacement," Working Papers 29, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    18. Brian A. Jacob & Susan M. Dynarski & Kenneth Frank & Barbara Schneider, 2016. "Are Expectations Alone Enough? Estimating the Effect of a Mandatory College-Prep Curriculum in Michigan," CESifo Working Paper Series 5848, CESifo Group Munich.
    19. Ramnath, Shanthi, 2013. "Taxpayers' responses to tax-based incentives for retirement savings: Evidence from the Saver's Credit notch," Journal of Public Economics, Elsevier, vol. 101(C), pages 77-93.
    20. Brian Jacob & Susan Dynarski & Kenneth Frank & Barbara Schneider, 2016. "Are Expectations Alone Enough? Estimating the Effect of a Mandatory College-Prep Curriculum in Michigan," NBER Working Papers 22013, National Bureau of Economic Research, Inc.
    21. Gustavo Bobonis & Edward Miguel & Charu Sharma, 2004. "Iron deficiency anemia and school participation," Natural Field Experiments 00219, The Field Experiments Website.
    22. Michael Kremer & Edward Miguel & Rebecca Thornton, 2004. "Merit Scholarships, Randomized Evaluation, Human Capital Spillovers, Africa," CID Working Papers 109, Center for International Development at Harvard University.
    23. Tim Kaiser & Lukas Menkhoff, 2018. "Active Learning Fosters Financial Behavior: Experimental Evidence," Discussion Papers of DIW Berlin 1743, DIW Berlin, German Institute for Economic Research.

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    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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