It’s never too LATE: A new look at local average treatment effects with or without defiers

نویسندگان

چکیده

Summary: In heterogeneous treatment effect models with endogeneity, identification of the local average (LATE) typically relies on availability an exogenous instrument monotonically related to participation. First, we demonstrate that a strictly weaker monotonicity condition—invoked for specific potential outcome values rather than globally—identifies LATEs compliers and defiers. Second, show our results apply subsets defiers when imposing even compliers-defiers assumption allows both types at any value. We propose estimators are potentially more efficient two-stage least squares (2SLS) in finite samples, cases where 2SLS is consistent. Finally, provide empirical application estimating returns education using quarter birth instrument.

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ژورنال

عنوان ژورنال: Econometrics Journal

سال: 2023

ISSN: ['1368-423X', '1367-423X', '1368-4221']

DOI: https://doi.org/10.1093/ectj/utad013