Identification and Confidence Regions for Treatment Effect and its Distribution under Stochastic Dominance

Sungwon Lee ()
Additional contact information
Sungwon Lee: Department of Economics, Sogang University, Seoul

No 2011, Working Papers from Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy)

Abstract: This paper considers identification of treatment effect and its distribution under some distributional assumptions. I assume that a binary treatment is endogenously determined. The main identification objects are the quantile treatment effect and the distribution of the treatment effect. To examine the identification problems, I construct a counterfactual model without specifying an underlying economic model and apply Manski's approach (Manski (1990)) to find the quantile treatment effects. For the distribution of the treatment effect, I follow the approach proposed by Fan and Park (2010). Some distributional assumptions called stochastic dominance are imposed on the model. Stochastic dominance assumptions are consistent with economic theories in many areas and the results show that those distributional assumptions help to tighten the bounds on the parameters of interest. This paper also provides confidence regions for identified sets that are pointwise consistent in level. An empirical study on the return to college is provided. The empirical results confirm that the stochastic dominance assumptions improve the bounds on the distribution of the treatment effect.

Pages: 28 pages
Date: 2020
New Economics Papers: this item is included in nep-ecm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://tinyurl.com/ytrht5uo First version, 2020 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sgo:wpaper:2011

Access Statistics for this paper

More papers in Working Papers from Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Jung Hur ().