It is never too LATE: a new look at local average treatment effects with or without defiers
Christian M Dahl,
Martin Huber and
Giovanni Mellace
The Econometrics Journal, 2023, vol. 26, issue 3, 378-404
Abstract:
SummaryIn 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.
Keywords: causal effects; IV; LATE; local CD; local monotonicity; principal stratification (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://hdl.handle.net/10.1093/ectj/utad013 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: It's never too LATE: A new look at local average treatment effects with or without defiers (2017) 
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:oup:emjrnl:v:26:y:2023:i:3:p:378-404.
Access Statistics for this article
The Econometrics Journal is currently edited by Jaap Abbring
More articles in The Econometrics Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().