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A Computational Approach to Identification of Treatment Effects for Policy Evaluation

Sukjin Han, Shenshen Yang

arXiv 29 Sep 2020 · Econometrics · publishedJournal of Econometrics (2024) · 7 citations (OpenAlex)

arXiv:2009.13861 · PDF · DOI · OpenAlex · Extracted main text

Abstract

For counterfactual policy evaluation, it is important to ensure that treatment parameters are relevant to policies in question. This is especially challenging under unobserved heterogeneity, as is well featured in the definition of the local average treatment effect (LATE). Being intrinsically local, the LATE is known to lack external validity in counterfactual environments. This paper investigates the possibility of extrapolating local treatment effects to different counterfactual settings when instrumental variables are only binary. We propose a novel framework to systematically calculate sharp nonparametric bounds on various policy-relevant treatment parameters that are defined as weighted averages of the marginal treatment effect (MTE). Our framework is flexible enough to fully incorporate statistical independence (rather than mean independence) of instruments and a large menu of identifying assumptions beyond the shape restrictions on the MTE that have been considered in prior studies. We apply our method to understand the effects of medical insurance policies on the use of medical services.

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69
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distinct cited
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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
1Mogstad, M., A. Santos, and A. Torgovitsky (2018) Using instrumental variables for inference about policy relevant treatment parameters1.000379100%
2Heckman, J. J. and E. Vytlacil (2005) Structural equations, treatment effects, and econometric policy evaluation11.00053100%
3Imbens, G. W. and J. D. Angrist (1994) Identification and Estimation of Local Average Treatment Effects0.92844100%
4Han, S. and S. Lee (2019) Estimation in a generalization of bivariate probit models with dummy endogenous regressors self0.92843100%
5Balke, A. and J. Pearl (1997) Bounds on treatment effects from studies with imperfect compliance0.87452100%
6Shaikh, A. M. and E. J. Vytlacil (2011) Partial identification in triangular systems of equations with binary dependent variables0.84333100%
7Brinch, C. N., M. Mogstad, and M. Wiswall (2017) Beyond LATE with a discrete instrument0.84333100%
8Kowalski, A. E (2021) Reconciling seemingly contradictory results from the Oregon health insurance experiment and the Massachusetts health reform0.84333100%
9Manski, C. F. and J. V. Pepper (2000) Monotone instrumental variables: With an application to the returns to schooling0.81142100%
10Manski, C. F (1990) Nonparametric bounds on treatment effects0.73732100%

Showing the top 10 of 70 scored citations.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Partial Identification of Policy-Relevant Treatment Effects with Instrumental Variables via Optimal Transport0.87472
2Inference for Interval-Identified Parameters Selected from an Estimated Set0.87462
3On Quantile Treatment Effects, Rank Similarity, and Variation of Instrumental Variables0.64422
4Policy Learning with Distributional Welfare0.40511
5Set-Valued Control Functions0.40511
6Estimating Causal Effects of Discrete and Continuous Treatments with Binary Instruments0.40511
7On the Identifying Power of Generalized Monotonicity for Average Treatment Effects0.40511
8Bounds for within-household encouragement designs with interference0.40511
9On Quantile Treatment Effects, Rank Similarity, and Variation of Instrumental Variables0.40511
10The Markup Falsification Adaptive Set0.40511