Treatment effects with targeting instruments

Sokbae (Simon) Lee and Bernard Salanié

No 23/24, CeMMAP working papers from Institute for Fiscal Studies

Abstract: Multivalued treatments are commonplace in applications. We explore the use of discrete-valued instruments to control for selection bias in this setting. Our discussion revolves around the concept of targeting: which instruments target which treatments. It allows us to establish conditions under which counterfactual averages and treatment effects are point- or partially-identified for composite complier groups. We illustrate the usefulness of our framework by applying it to data from the Head Start Impact Study. Under a plausible positive selection assumption, we derive informative bounds that suggest less beneficial effects of Head Start expansions than the parametric estimates of Kline and Walters (2016).

Date: 2024-12-12
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Working Paper: Treatment Effects with Targeting Instruments (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:azt:cemmap:23/24

DOI: 10.47004/wp.cem.2024.2324

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