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Interpreting Quantile Independence

Matthew A. Masten, Alexandre Poirier

arXiv 29 Apr 2018 · Econometrics

arXiv:1804.10957 · PDF · DOI · OpenAlex · Extracted main text

Abstract

How should one assess the credibility of assumptions weaker than statistical independence, like quantile independence? In the context of identifying causal effects of a treatment variable, we argue that such deviations should be chosen based on the form of selection on unobservables they allow. For quantile independence, we characterize this form of treatment selection. Specifically, we show that quantile independence is equivalent to a constraint on the average value of either a latent propensity score (for a binary treatment) or the cdf of treatment given the unobservables (for a continuous treatment). In both cases, this average value constraint requires a kind of non-monotonic treatment selection. Using these results, we show that several common treatment selection models are incompatible with quantile independence. We introduce a class of assumptions which weakens quantile independence by removing the average value constraint, and therefore allows for monotonic treatment selection. In a potential outcomes model with a binary treatment, we derive identified sets for the ATT and QTT under both classes of assumptions. In a numerical example we show that the average value constraint inherent in quantile independence has substantial identifying power. Our results suggest that researchers should carefully consider the credibility of this non-monotonicity property when using quantile independence to weaken full independence.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Imbens, G. W. and W. K. Newey (2009) Identification and estimation of triangular simultaneous equations models without additivity0.87452100%
2Chesher, A (2003) Identification in nonseparable models0.73732100%
3Manski, C. F (1985) Semiparametric analysis of discrete response: Asymptotic properties of the maximum score estimator0.73732100%
4Masten, M. A. and A. Poirier (2018) Identification of treatment effects under conditional partial independence self0.7218438%
5Chernozhukov, V. and C. Hansen (2005) An IV model of quantile treatment effects0.64422100%
6Imbens, G. W. and J. D. Angrist (1994) Identification and estimation of local average treatment effects0.64422100%
7Manski, C. F (1975) Maximum score estimation of the stochastic utility model of choice0.64422100%
8Manski, C. F. and J. V. Pepper (2000) Monotone instrumental variables: With an application to the returns to schooling0.64422100%
9Nelsen, R. B (2006) An Introduction to Copulas0.64422100%
10Manski, C. F (1988) b): Identification of binary response models0.58531100%

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Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Inference on Breakdown Frontiers0.40511