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itsnevertoolateanewlookatlocalaveragetreatmenteffectswithorwithoutdefiers_2023_ecoometricsjournal
Public access from
14/08/2026
Journal article

It is never too LATE: a new look at local average treatment effects with or without defiers

BP2-STS

  • 2023
Published in:
  • The Econometric Journal. - 2023, vol. 26, p. 378-404
causal effects
IV
LATE
local CD
local monotonicity
principal stratification
English In heterogeneous treatment effect models with endogeneity, identification of the local average treatment effect (LATE) typically relies on the availability of an exogenous instrument monotonically related to treatment participation. First, we demonstrate that a strictly weaker local monotonicity condition—invoked for specific potential outcome values rather than globally—identifies the LATEs on compliers and defiers. Second, we show that our identification results apply to subsets of compliers and defiers when imposing an even weaker local compliers-defiers assumption that allows for both types at any potential outcome value. We propose estimators that are potentially more efficient than two-stage least squares (2SLS) in finite samples, even in cases where 2SLS is consistent. Finally, we provide an empirical application to estimating returns to education using the quarter of birth instrument.
Faculty
Faculté des sciences économiques et sociales et du management
Department
Département d'économie politique
Language
  • English
License
License undefined
Open access status
green
Identifiers
Persistent URL
https://folia.unifr.ch/unifr/documents/330268
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