Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/111366 
Year of Publication: 
2014
Series/Report no.: 
cemmap working paper No. CWP31/14
Publisher: 
Centre for Microdata Methods and Practice (cemmap), London
Abstract: 
This paper discusses the nonparametric identi.cation of causal direct and indirect effects of a binary treatment based on instrumental variables. We identify the indirect effect, which operates through a mediator (i.e. intermediate variable) that is situated on the causal path between the treatment and the outcome, as well as the unmediated direct effect of the treatment using distinct instruments for the endogenous treatment and the endogenous mediator. We examine different settings to obtain nonparametric identification of (natural) direct and indirect as well as controlled direct effects for continuous and discrete mediators and continuous and discrete instruments. We illustrate our approach in two applications: to disentangle the effects (i) of education on health, which may be mediated by income, and (ii) of the Job Corps training program, which may affect earnings indirectly via working longer hours and directly via higher wages per hour.
Subjects: 
direct effect
indirect effect
instrument
treatment effects
JEL: 
C14
C21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
408.89 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.