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Convex Treatment Response and Treatment Selection

Author

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  • Stefan Boes

    () (Socioeconomic Institute, University of Zurich)

Abstract

This paper analyzes the identifying power of weak convexity assumptions in treatment effect models with endogenous selection. The counterfactual distributions are constrained either in terms of the response function, or conditional on the realized treatment, and sharp bounds on the potential outcome distributions are derived. The methods are applied to bound the effect of education on smoking.

Suggested Citation

  • Stefan Boes, 2010. "Convex Treatment Response and Treatment Selection," SOI - Working Papers 1001, Socioeconomic Institute - University of Zurich.
  • Handle: RePEc:soz:wpaper:1001
    as

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    File URL: http://www.econ.uzh.ch/static/wp_soi/wp1001.pdf
    File Function: first version, 2010
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    References listed on IDEAS

    as
    1. Charles F. Manski, 1997. "Monotone Treatment Response," Econometrica, Econometric Society, vol. 65(6), pages 1311-1334, November.
    2. Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2007. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," Econometrica, Econometric Society, vol. 75(2), pages 323-363, March.
    3. Grimard, Franque & Parent, Daniel, 2007. "Education and smoking: Were Vietnam war draft avoiders also more likely to avoid smoking?," Journal of Health Economics, Elsevier, vol. 26(5), pages 896-926, September.
    4. Kenkel, Donald S, 1991. "Health Behavior, Health Knowledge, and Schooling," Journal of Political Economy, University of Chicago Press, vol. 99(2), pages 287-305, April.
    5. Janet Currie & Enrico Moretti, 2003. "Mother's Education and the Intergenerational Transmission of Human Capital: Evidence from College Openings," The Quarterly Journal of Economics, Oxford University Press, vol. 118(4), pages 1495-1532.
    6. Donald Kenkel & Dean Lillard & Alan Mathios, 2006. "The Roles of High School Completion and GED Receipt in Smoking and Obesity," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 635-660, July.
    7. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    8. Tsunao Okumura & Emiko Usui, 2014. "Concaveā€monotone treatment response and monotone treatment selection: With an application to the returns to schooling," Quantitative Economics, Econometric Society, vol. 5, pages 175-194, March.
    9. Charles F. Manski & John V. Pepper, 2000. "Monotone Instrumental Variables, with an Application to the Returns to Schooling," Econometrica, Econometric Society, vol. 68(4), pages 997-1012, July.
    10. Charles F. Manski & John V. Pepper, 2009. "More on monotone instrumental variables," Econometrics Journal, Royal Economic Society, vol. 12(s1), pages 200-216, January.
    11. Farrell, Phillip & Fuchs, Victor R. & Fuchs, Victor R., 1982. "Schooling and health : The cigarette connection," Journal of Health Economics, Elsevier, vol. 1(3), pages 217-230, December.
    12. Rosenzweig, Mark R, 1995. "Why Are There Returns to Schooling?," American Economic Review, American Economic Association, vol. 85(2), pages 153-158, May.
    13. Tenn, Steven & Herman, Douglas A. & Wendling, Brett, 2010. "The role of education in the production of health: An empirical analysis of smoking behavior," Journal of Health Economics, Elsevier, vol. 29(3), pages 404-417, May.
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    Citations

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    Cited by:

    1. Tsunao Okumura & Emiko Usui, 2014. "Concaveā€monotone treatment response and monotone treatment selection: With an application to the returns to schooling," Quantitative Economics, Econometric Society, vol. 5, pages 175-194, March.
    2. Demuynck, Thomas, 2015. "Bounding average treatment effects: A linear programming approach," Economics Letters, Elsevier, vol. 137(C), pages 75-77.
    3. Stefan Boes, 2011. "On the causal effect of schooling on smoking: evidence without exogeneity conditions," Diskussionsschriften dp1102, Universitaet Bern, Departement Volkswirtschaft.

    More about this item

    Keywords

    nonparametric bounds; causality; endogeneity; instrumental variables;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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