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Testing Instrument Validity with Covariates

Thomas Carr, Toru Kitagawa

arXiv 15 Dec 2021 · Econometrics · 3 citations (OpenAlex)

arXiv:2112.08092 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a novel test of the instrumental variable identifying assumptions for heterogeneous treatment effect models with conditioning covariates. We assume semiparametric dependence between potential outcomes and conditioning covariates. This allows us to obtain testable equality and inequality restrictions among the subdensities of estimable partial residuals. We propose jointly testing these restrictions. To improve power, we introduce distillation, where a trimmed sample is used to test the inequality restrictions. In Monte Carlo exercises we find gains in finite sample power from testing restrictions jointly and distillation. We apply our test procedure to three instruments and reject the null for one.

Citation extraction

59
references
173
in-text mentions
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distinct cited
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appendix boundary found by appendix_titled_section at “Appendix” · 65% 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
1Kitagawa, T (2015) A Test for Instrument Validity self1.000256100%
2Carneiro, P., J. J. Heckman, and E. J. Vytlacil (2011) Estimating Marginal Returns to Education1.000113100%
3Mourifié, I. and Y. Wan (2017) Testing local average treatment effect assumptions1.000103100%
4Huber, M. and G. Mellace (2015) Testing instrument validity for LATE identification based on inequality moment constraints1.00093100%
5Imbens, G. W. and J. D. Angrist (1994) Identification and Estimation of Local Average Treatment Effects0.92843100%
6Angrist, J. D. and W. N. Evans (1998) Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size0.874172100%
7Card, D (1993) Using Geographic Variation in College Proximity to Estimate the Return to Schooling, Working Paper 4483, National Bureau of Econ…0.874132100%
8Oreopoulos, P (2006) Estimating Average and Local Average Treatment Effects of Education when Compulsory Schooling Laws Really Matter0.874132100%
9Sun, Z (2021) Instrument Validity for Heterogeneous Causal Effects0.87452100%
10Heckman, J. J. and E. Vytlacil (2005) Structural equations, treatment effects, and econometric policy evaluation0.81142100%

Showing the top 10 of 59 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
1A Sharp Test for the Judge Leniency Design0.73732
2Pairwise Valid Instruments0.40511
3Policy Relevant Treatment Effects with Multidimensional Unobserved Heterogeneity0.40511
4Testing Mechanisms0.40511
5Unobserved Heterogeneous Spillover Effects in Instrumental Variable Models0.40511
6A Practical Guide to Instrumental Variables Methods with Heterogeneous Treatment Effects0.40511