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Nonparametric Bounds on Treatment Effects with Imperfect Instruments

Kyunghoon Ban, Désiré Kédagni

arXiv 30 Sep 2021 · Econometrics · publishedEconometrics Journal (2021) · 2 citations (OpenAlex)

arXiv:2109.14785 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper extends the identification results in Nevo and Rosen (2012) to nonparametric models. We derive nonparametric bounds on the average treatment effect when an imperfect instrument is available. As in Nevo and Rosen (2012), we assume that the correlation between the imperfect instrument and the unobserved latent variables has the same sign as the correlation between the endogenous variable and the latent variables. We show that the monotone treatment selection and monotone instrumental variable restrictions, introduced by Manski and Pepper (2000, 2009), jointly imply this assumption. Moreover, we show how the monotone treatment response assumption can help tighten the bounds. The identified set can be written in the form of intersection bounds, which is more conducive to inference. We illustrate our methodology using the National Longitudinal Survey of Young Men data to estimate returns to schooling.

Citation extraction

27
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appendix boundary found by appendix_titled_section at “Appendix” · 62% of the source is main text. Read the extracted text to check this.

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
1Nevo, A. and A. Rosen (2012) Identification with imperfect instruments1.000136100%
2Manski, C. F. and J. Pepper (2000) Monotone instrumental variables: With an application to the returns to schooling1.00085100%
3Manski, C. F. and J. Pepper (2009) More on monotone instrumental variables1.00064100%
4Chernozhukov, V., S. Lee, and A. M. Rosen (2013) Intersection bounds: Estimation and inference0.9285480%
5Chernozhukov, V., W. Kim, S. Lee, and A. M. Rosen (2015) Implementing intersection bounds in stata0.9285380%
6Kédagni, D., L. Li, and I. Mourifié (2018) Bounding average returns to schooling using unconditional moment restrictions0.84333100%
7Andrews, D. W. K. and X. Shi (2013) Inference based on conditional moment inequalities0.64422100%
8Kédagni, D. and I. Mourifié (2020) Generalized instrumental inequalities: Testing the instrumental variable independence assumption0.64422100%
Manskiunmatched citation key Manski0.58531100%
10Andrews, D. W. K., W. Kim, and X. Shi (2017) Stata commands for testing conditional moment inequalities/equalities0.51121100%

Showing the top 10 of 65 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.

Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Debiased Machine Learning of Aggregated Intersection Bounds and Other Causal Parameters0.40511
21420 Identification with possibly invalid IVs0.40511