Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241898 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
cemmap working paper No. CWP23/20
Publisher: 
Centre for Microdata Methods and Practice (cemmap), London
Abstract: 
This paper examines the identifying power of instrument exogeneity in the treatment effect model. We derive the identification region of the potential outcome distributions, which are the collection of distributions that are compatible with data and with the restrictions of the model. We consider identification when (i) the instrument is independent of each of the potential outcomes (marginal independence), (ii) the instrument is independent of each of the potential outcomes jointly (joint independence), and (iii.) the instrument is independent of each of the potential outcomes jointly and is monotonic (the LATE restriction). By comparing the size of the identification region under each restriction, we show that joint independence provides more identifying information for the potential outcome distributions than marginal independence, but that the LATE restriction provides no identification gain beyond joint independence. We also, under each restriction, derive sharp bounds for the Average Treatment Effect and sharp testable implication to falsify the restriction. Our analysis covers discrete and continuous outcome cases, and extends the Average Treatment Effect bounds of Balke and Pearl (1997) developed for the dichotomous outcome case to a more general setting.
Subjects: 
Partial Identification
Treatment Effects
Instrumental Variables
JEL: 
C14
C21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
14.03 MB





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