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Inference for Nonlinear Endogenous Treatment Effects Accounting for High-Dimensional Covariate Complexity

Qingliang Fan, Zijian Guo, Ziwei Mei, Cun-Hui Zhang

arXiv 12 Oct 2023 · Econometrics · 1 citations (OpenAlex)

arXiv:2310.08063 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Nonlinearity and endogeneity are prevalent challenges in causal analysis using observational data. This paper proposes an inference procedure for a nonlinear and endogenous marginal effect function, defined as the derivative of the nonparametric treatment function, with a primary focus on an additive model that includes high-dimensional covariates. Using the control function approach for identification, we implement a regularized nonparametric estimation to obtain an initial estimator of the model. Such an initial estimator suffers from two biases: the bias in estimating the control function and the regularization bias for the high-dimensional outcome model. Our key innovation is to devise the double bias correction procedure that corrects these two biases simultaneously. Building on this debiased estimator, we further provide a confidence band of the marginal effect function. Simulations and an empirical study of air pollution and migration demonstrate the validity of our procedures.

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70
references
122
in-text mentions
70
distinct cited
7
self-citations
37,870
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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, V., Chetverikov, D., and Kato, K (2014) Anti-concentration and honest, adaptive confidence bands1.00054100%
2Chernozhukov, V., Chetverikov, D., and Kato, K (2014) Gaussian approximation of suprema of empirical processes1.00054100%
3Chen, X. and Christensen, T. M (2018) Optimal sup-norm rates and uniform inference on nonlinear functionals of nonparametric IV regression1.00053100%
4Lu, J., Kolar, M., and Liu, H (2020) Kernel meets sieve: Post-regularization confidence bands for sparse additive model1.00053100%
5Newey, W. K., Powell, J., and Vella, F (1999) Nonparametric estimation of triangular simultaneous equations models1.00053100%
6Javanmard, A. and Montanari, A (2014) Confidence intervals and hypothesis testing for high-dimensional regression0.92844100%
7Ozabaci, D., Henderson, D. J., and Su, L (2014) Additive nonparametric regression in the presence of endogenous regressors0.92843100%
8Chen, S., Oliva, P., and Zhang, P (2022) The effect of air pollution on migration: Evidence from China0.87452100%
9Su, L. and Ullah, A (2008) Local polynomial estimation of nonparametric simultaneous equations models0.84333100%
10Schumaker, L (2007) Spline functions: basic theory0.81142100%

Showing the top 10 of 70 scored citations.