Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/33804 
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers No. 2368
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
In this paper we discuss several methodological issues related to the identification and estimation of Average Treatment on the Treated (ATT) effects in the presence of low compliance. We consider non-experimental data consisting of a treatment group, where a program is implemented, and of a control group that is non-randomly drawn, where the program is not offered. Estimating the ATT involves tackling both the non-random assignment of the program and the non-random participation among treated individuals. We argue against standard matching approaches to deal with the latter issue because they are based on the assumption that we observe all variables that determine both participation and outcome. Instead, we propose an IV-type estimator which exploits the fact that the ATT can be expressed as the Average Intent to Treat divided by the participation share, in the absence of spillover effects. We propose a semi-parametric estimator that couples the flexibility of matching estimators with a standard Instrumental Variable approach. We discuss the different assumptions necessary for the identification of the ATT with each of the two approaches, and we provide an empirical application by estimating the effect of the Mexican conditional cash transfer program, Oportunidades, on food consumption.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
253.71 kB





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