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Identification-robust inference for the LATE with high-dimensional covariates

Yukun Ma

arXiv 20 Feb 2023 · Econometrics

arXiv:2302.09756 · PDF · Extracted main text

Abstract

This paper presents an inference method for the local average treatment effect (LATE) in the presence of high-dimensional covariates, irrespective of the strength of identification. We propose a novel high-dimensional conditional test statistic with uniformly correct asymptotic size. We provide an easy-to-implement algorithm to infer the high-dimensional LATE by inverting our test statistic and employing the double/debiased machine learning method. Simulations indicate that our test is robust against both weak identification and high dimensionality concerning size control and power performance, outperforming other conventional tests. Applying the proposed method to railroad and population data to study the effect of railroad access on urban population growth, we observe that our methodology yields confidence intervals that are 49% to 92% shorter than conventional results, depending on specifications.

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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
1Chernozhukov, Victor and Chetverikov, Denis and Demirer, Mert and Du… (2018) Double/debiased machine learning for treatment and structural parameters0.92314679%
2Hornung, Erik (2015) Railroads and growth in Prussia0.874102100%
3Ambrus, Attila and Field, Erica and Gonzalez, Robert (2020) Loss in the time of cholera: Long-run impact of a disease epidemic on the urban landscape0.87462100%
4Belloni, Alexandre and Chernozhukov, Victor and Fernandez-Val, Ivan… (2017) Program evaluation and causal inference with high-dimensional data0.7946450%
5Lee, David S and McCrary, Justin and Moreira, Marcelo J and Porter,… (2022) Valid t-ratio inference for IV0.73732100%
6Stock, James H and Wright, Jonathan H (2000) GMM with weak identification0.73732100%
7Mikusheva, Anna and Sun, Liyang (2022) Inference with many weak instruments0.64422100%
8Tan, Zhiqiang (2006) Regression and weighting methods for causal inference using instrumental variables0.64422100%
9Andrews, Isaiah and Mikusheva, Anna (2016) Conditional inference with a functional nuisance parameter0.58510320%
10Angrist, Joshua D and Krueger, Alan B (1991) Does compulsory school attendance affect schooling and earnings?0.58531100%

Showing the top 10 of 57 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
1An Introduction to Double/Debiased Machine Learning0.40511
2Anytime-Valid Inference for Double/Debiased Machine Learning of Causal Parameters0.00051