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Testing the identification of causal effects in observational data

Martin Huber, Jannis Kueck

arXiv 29 Mar 2022 · Econometrics · 1 citations (OpenAlex)

arXiv:2203.15890 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This study demonstrates the existence of a testable condition for the identification of the causal effect of a treatment on an outcome in observational data, which relies on two sets of variables: observed covariates to be controlled for and a suspected instrument. Under a causal structure commonly found in empirical applications, the testable conditional independence of the suspected instrument and the outcome given the treatment and the covariates has two implications. First, the instrument is valid, i.e. it does not directly affect the outcome (other than through the treatment) and is unconfounded conditional on the covariates. Second, the treatment is unconfounded conditional on the covariates such that the treatment effect is identified. We suggest tests of this conditional independence based on machine learning methods that account for covariates in a data-driven way and investigate their asymptotic behavior and finite sample performance in a simulation study. We also apply our testing approach to evaluating the impact of fertility on female labor supply when using the sibling sex ratio of the first two children as supposed instrument, which by and large points to a violation of our testable implication for the moderate set of socio-economic covariates considered.

Citation extraction

71
references
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in-text mentions
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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
1Angrist, J., Evans, W (1998) Children and their parents labor supply: Evidence from exogeneous variation in family size0.87452100%
2Pearl, J (2000) Causality: Models, Reasoning, and Inference0.8435360%
3Racine, J (1997) Consistent significance testing for nonparametric regression0.84333100%
4Racine, J.S., Hart, J., Li, Q (2006) Testing the significance of categorical predictor variables in nonparametric regression models0.84333100%
5Pearl, J (1988) Probabilistic reasoning in intelligent systems: networks of plausible inference0.7374350%
6Caetano, C., Caetano, G., Fe, H., Nielsen, E (2021) A dummy test of identi?cation in models with bunching0.73732100%
7Angrist, J.D., Rokkanen, M (2015) Wanna get away? regression discontinuity estimation of exam school effects away from the cutoff0.73732100%
8de Luna, X., Johansson, P (2014) Testing for the unconfoundedness assumption using an instrumental assumption0.73732100%
9Wooldridge, J.M (1992) A test for functional form against nonparametric alternatives0.73732100%
10Athey, S., Imbens, G (2016) Recursive partitioning for heterogeneous causal effects0.64422100%

Showing the top 10 of 71 scored citations.

Cited by, within the corpus

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2Learning and Testing Exposure Mappings of Interference using Graph Convolutional Autoencoder0.90983
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42407.086020.51121
5A joint test of unconfoundedness and common trends0.40511