Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/217110
Authors: 
Kim, Wooyoung
Kwon, Koohyun
Kwon, Soonwoo
Lee, Sokbae
Year of Publication: 
2018
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 9 [Year:] 2018 [Issue:] 2 [Pages:] 617-642
Abstract: 
In this paper, we investigate what can be learned about average counterfactual outcomes as well as average treatment effects when it is assumed that treatment response functions are smooth. We obtain a set of new partial identification results for both the average treatment response and the average treatment effect. In particular, we find that the monotone treatment response and monotone treatment selection bound of Manski and Pepper, 2000 can be further tightened if we impose the smoothness conditions on the treatment response. Since it is unknown in practice whether the imposed smoothness restriction is met, it is desirable to conduct a sensitivity analysis with respect to the smoothness assumption. We demonstrate how one can carry out a sensitivity analysis for the average treatment effect by varying the degrees of smoothness assumption. We illustrate our findings by reanalyzing the return to schooling example of Manski and Pepper, 2000 and also by measuring the effect of the length of job training on the labor market outcomes.
Subjects: 
Bounds
identification regions
monotonicity
partial identification
sensitivity analysis
treatment responses
treatment selection
JEL: 
C14
C18
C21
C26
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/4.0/
Document Type: 
Article

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