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Nonparametric Point Identification of Treatment Effect Distributions via Rank Stickiness

Tengyuan Liang

arXiv 23 Apr 2026 · Econometrics

arXiv:2604.21548 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Treatment effect distributions are not identified without restrictions on the joint distribution of potential outcomes. Existing approaches either impose rank preservation -- a strong assumption -- or derive partial identification bounds that are often wide. We show that a single scalar parameter, rank stickiness, suffices for nonparametric point identification while permitting rank violations. The identified joint distribution -- the coupling that maximizes average rank correlation subject to a relative entropy constraint, which we call the Bregman-Sinkhorn copula -- is uniquely determined by the marginals and rank stickiness. Its conditional distribution is an exponential tilt of the marginal with a Bregman divergence as the exponent, yielding closed-form conditional moments and rank violation probabilities; the copula nests the comonotonic and Gaussian copulas as special cases. The empirical Bregman-Sinkhorn copula converges at the parametric $\sqrt{n}$-rate with a Gaussian process limit, despite the infinite-dimensional parameter space. We apply the framework to estimate the full treatment effect distribution, derive a variance estimator for the average treatment effect tighter than the Fréchet--Hoeffding and Neyman bounds, and extend to observational studies under unconfoundedness.

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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
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7M. H. Farrell, T. Liang, and S. Misra (2021) Deep neural networks for estimation and inference0.40511100%
8T. Liang (2025) Distributional shrinkage i: Universal denoisers in multi-dimensions0.40511100%
9T. Liang (2025) Distributional shrinkage ii: Optimal transport denoisers with higher-order scores0.40511100%
10S. Athey and G. W. Imbens (2017) The state of applied econometrics: Causality and policy evaluation0.40511100%

Showing the top 10 of 26 scored citations.