Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76200
Authors: 
Boes, Stefan
Year of Publication: 
2009
Series/Report no.: 
Working Paper, Socioeconomic Institute, University of Zurich 0920
Abstract: 
This paper explores semi-monotonicity constraints in the distribution of potential outcomes, first, conditional on an instrument, and second, in terms of the response function. The imposed assumptions are strictly weaker than traditional instrumental variables assumptions and can be gainfully employed to bound the counterfactual distributions, even though point identification is only achieved in special cases. The bounds have a simple analytical form and thus have much practical relevance in all instances when strong exogeneity assumptions cannot be credibly invoked. The bounding strategy is illustrated in a simulated data example and applied to the effect of education on smoking.
Subjects: 
nonparametric bounds
treatment effects
causality
endogeneity
instrumental variables
policy evaluation
JEL: 
C14
C21
C25
Document Type: 
Working Paper

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