 Layered policy analysis in program evaluation using the marginal treatment effectIsmael Mourifié and Yuanyuan Wan Journal of Econometrics, 2025, vol. 251, issue C Abstract: This paper proposes a unified approach to derive sharp bounds on conventional policy parameters when the instrumental variables (IVs) are potentially invalid. Using a vine copula approach, we propose a novel characterization of the identified sets for the marginal treatment effect (MTE) and the policy-relevant treatment effect (PRTE) parameters. Our method has various advantages: First, it explicitly demonstrates how imposing different IV-related assumptions with different credibility levels affects the MTE and PRTE’s identified set. Second, it provides a basis for testing model specifications and hypotheses about various imperfect IV-related assumptions. Third, it provides a tractable way to inform policy choices in the presence of uncertainty of the validity of identifying assumptions. Our approach enlarges the MTE framework’s scope by showing how it can be used to inform policy decisions even when valid instruments are not available. Keywords: Desegregated MTE; Vine copula; Identified set; Policy-relevant treatment effect (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:251:y:2025:i:c:s0304407625001149 DOI: 10.1016/j.jeconom.2025.106060 Access Statistics for this article Journal of Econometrics is currently edited by T. Amemiya, A. R. Gallant, J. F. Geweke, C. Hsiao and P. M. Robinson More articles in Journal of Econometrics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.