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Title:Bounds on treatment effects on transitions PDF Logo
Authors:Ridder, Geert
Vikström, Johan
Issue Date:2011
Series/Report no.:Working paper // IFAU - Institute for Labour Market Policy Evaluation 2011:6
Abstract:This paper considers the definition and identification of treatment effects on conditional transition probabilities. We show that even under sequential random assignment only the instantaneous average treatment effect is point identified. Because treated and control units drop out at different rates, randomization only ensures the comparability of treatment and controls at the time of randomization, so that long run average treatment effects are not point identified. Instead we derive informative bounds on these average treatment effects. Our bounds do not impose (semi)parametric restrictions, as e.g. proportional hazards, that would narrow the bounds or even allow for point identification. We also explore various assumptions such as monotone treatment response, common shocks and positively correlated outcomes.
Subjects:Partial identification
duration model
randomized experiment
treatment effect
JEL:C14
C41
Document Type:Working Paper
Appears in Collections:Working Papers, IFAU - Institute for Evaluation of Labour Market and Education Policy

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