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Nonparametric Analysis of Treatment Effects in Ordered Response Models

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  • Stefan Boes

    () (Socioeconomic Institute, University of Zurich)

Abstract

This paper deals with the identification of treatment effects when the outcome variable is ordered. If outcomes are measured ordinally, previously developed methods to investigate the impact of an endogenous binary regressor on average outcomes cannot be applied as the expectation of an ordered variable, in its strict sense, does not exist, and a shift in focus to distributional effects is indispensable. Without imposing a fully fledged parametric model the treatment effects are generally not point-identified. Assuming a threshold crossing model on both the ordered potential outcomes and the binary treatment variable leaving the distribution of error terms and functional forms unspecified, it is discussed how the treatment effects can be bounded and inference on the bounds can be conducted.

Suggested Citation

  • Stefan Boes, 2007. "Nonparametric Analysis of Treatment Effects in Ordered Response Models," SOI - Working Papers 0709, Socioeconomic Institute - University of Zurich.
  • Handle: RePEc:soz:wpaper:0709
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    Cited by:

    1. Bernd Fitzenberger & Michael Lechner & Jeffrey Smith, 2013. "Estimation of treatment effects: recent developments and applications," Empirical Economics, Springer, vol. 44(1), pages 1-11, February.
    2. Donja Darai & Dario Sacco & Armin Schmutzler, 2010. "Competition and innovation: an experimental investigation," Experimental Economics, Springer;Economic Science Association, vol. 13(4), pages 439-460, December.
    3. Dennis L. Gärtner, 2010. "Monopolistic screening under learning by doing," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 574-597.
    4. Stefanie Hof, 2014. "Does Private Tutoring Work? The Effectiveness of Private Tutoring: A Nonparametric Bounds Analysis," Economics of Education Working Paper Series 0096, University of Zurich, Department of Business Administration (IBW).
    5. Johannes Schoder & Peter Zweifel, 2008. "Managed Care Konzepte und L�sungsans�tze� Ein internationaler Vergleich aus schweizerischer Sicht," SOI - Working Papers 0801, Socioeconomic Institute - University of Zurich.
    6. Falkinger, Josef, 2008. "Between Agora and Shopping Mall," IZA Discussion Papers 3524, Institute for the Study of Labor (IZA).
    7. Halbheer, Daniel & Fehr, Ernst & Goette, Lorenz & Schmutzler, Armin, 2009. "Self-reinforcing market dominance," Games and Economic Behavior, Elsevier, vol. 67(2), pages 481-502, November.
    8. Dennis Gaertner, 2007. "Why Bayes Rules: A Note on Bayesian vs. Classical Inference in Regime Switching Models," SOI - Working Papers 0719, Socioeconomic Institute - University of Zurich.
    9. Dario Sacco & Armin Schmutzler, 2008. "All-Pay Auctions with Negative Prize Externalities: Theory and Experimental Evidence," SOI - Working Papers 0806, Socioeconomic Institute - University of Zurich.
    10. William H. Greene & David A. Hensher, 2008. "Modeling Ordered Choices: A Primer and Recent Developments," Working Papers 08-26, New York University, Leonard N. Stern School of Business, Department of Economics.
    11. Adrian Bruhin, 2008. "Stochastic Expected Utility and Prospect Theory in a Horse Race: A Finite Mixture Approach," SOI - Working Papers 0803, Socioeconomic Institute - University of Zurich.
    12. Arne Risa Hole & Anita Ratcliffe, 2015. "The impact of the London bombings on the wellbeing of young Muslims," Working Papers 2015002, The University of Sheffield, Department of Economics.

    More about this item

    Keywords

    Nonparametric bounds; causal effects; potential outcomes; latent variables;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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