Limited Monotonicity and the Combined Compliers LATE

Nadja Hoff, Arthur Lewbel and Giovanni Mellace
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Nadja Hoff: University of Southern Denmark

No 1059, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: We consider endogenous binary treatment with multiple binary instruments. We propose a novel limited monotonicity (LiM) assumption that is generally weaker than alternative monotonicity assumptions in the literature. We define and identify (under LiM) the combined compliers local average treatment effect (CC-LATE), which is arguably a more policy-relevant parameter than the weighted average of LATEs identified by two-stage least squares (TSLS), and is valid under more general conditions. Estimating the CC-LATE is trivial, equivalent to running TSLS with one constructed instrument on a subsample. We use our CC-LATE to empirically assess how knowledge of HIV status influences protective behaviors.

Keywords: Instrumental variable; Local Average Treatment Effect; monotonicity; multiple instruments (search for similar items in EconPapers)
JEL-codes: C14 C21 C26 (search for similar items in EconPapers)
Date: 2023-05-24, Revised 2025-01-20
New Economics Papers: this item is included in nep-ecm
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Citations: View citations in EconPapers (1)

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Working Paper: Limited Monotonicity and the Combined Compliers LATE (2023)
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