SHARP BOUNDS ON TREATMENT EFFECTS IN A BINARY TRIANGULAR SYSTEM

Ismael Mourifiã‰
Authors registered in the RePEc Author Service: Ismael MOURIFIÉ ()

Working Papers from University of Toronto, Department of Economics

Abstract: This paper considers the evaluation of the average treatment e ffect (ATE) in a triangular system with binary dependent variables. I impose a threshold crossing model on both endogenous regressor and the outcome. No parametric functional form or distributional assumptions are imposed. Shaikh and Vytlacil (2011, SV) proposed bounds on ATE which are sharp only under a restrictive condition on the support of the covariates and the instruments, which rules out a wide range of models and many relevant applications. In some cases, when SV's support condition fails, their bounds retrieve the same empirical content as the model with unrestricted endogenous regressor. In this setting, I provide a methodology which allows to construct sharp bounds on the ATE by efficiently using variation on covariates without imposing support restrictions.

Keywords: partial identification; threshold crossing model; triangular system; average treatment effect; endogeneity; program social evaluation. (search for similar items in EconPapers)
JEL-codes: C14 C31 C35 (search for similar items in EconPapers)
Pages: Unknown pages
Date: 2013-10-01
New Economics Papers: this item is included in nep-ecm
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Journal Article: Sharp bounds on treatment effects in a binary triangular system (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-498

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