Journal article

Testing instrument validity for LATE identification based on inequality moment constraints

    2015
Published in:
  • Review of economics and statistics. - 2015, vol. 97, no. 2, p. 398-411
English We derive testable implications of instrument validity in just identified treat- ment effect models with endogeneity and consider several tests. The identifying assump- tions of the local average treatment effect allow us to both point identify and bound the mean potential outcomes (i) of the always takers under treatment and (ii) of the never takers under non-treatment. The point identified means must lie within their respective bounds, which provides us with four testable inequality moment constraints. Finally, we adapt our testing framework to the identification of distributional features. A brief simulation study and an application to labor market data are also provided.
Faculty
Faculté des sciences économiques et sociales et du management
Department
Département d'économie politique
Language
  • English
Classification
Economics
License
License undefined
Identifiers
Persistent URL
https://folia.unifr.ch/unifr/documents/307111
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