Testing instrument validity for LATE identification based on inequality moment constraints
- Huber, Martin University of St. Gallen, Dept. of Economics
- Mellace, Giovanni University of St. Gallen, Dept. of Economics
-
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
-
- RERO DOC 323034
- DOI 10.1162/REST_a_00450
- Persistent URL
- https://folia.unifr.ch/unifr/documents/307111
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