Sharp IV Bounds on Average Treatment Effects on the Treated and Other Populations Under Endogeneity and Noncompliance |
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| Authors: | Martin Huber Lukas Laffers Giovanni Mellace |
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| Affiliation: | 1. Department of Economics, University of Fribourg, Switzerland;2. Department of Mathematics, Matej Bel University, Banská Bystrica, Slovakia;3. Department of Business and Economics, University of Southern Denmark, Odense, Denmark |
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| Abstract: | In the presence of an endogenous binary treatment and a valid binary instrument, causal effects are point identified only for the subpopulation of compliers, given that the treatment is monotone in the instrument. With the exception of the entire population, causal inference for further subpopulations has been widely ignored in econometrics. We invoke treatment monotonicity and/or dominance assumptions to derive sharp bounds on the average treatment effects on the treated, as well as on other groups. Furthermore, we use our methods to assess the educational impact of a school voucher program in Colombia and discuss testable implications of our assumptions. Copyright © 2015 John Wiley & Sons, Ltd. |
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