A New Instrumental Method for Dealing with Endogenous Selection

Xavier D'Haultfoeuille

No 2008-23, Working Papers from Center for Research in Economics and Statistics

Abstract: This paper develops a new method for dealing with endogenous selection. When selectionis directly driven by the dependent variable, the usual instrumental strategy based onthe independence between the outcome and the instruments is likely to fail. Instead, thearticle suggests to rely on independence between the instruments and the selection variable,conditional on the outcome. This may be particularly suitable for nonignorable nonresponse,binary models with missing covariates or Roy models with unobserved sector. Nonparametricidentification of the joint distribution of variables is obtained under completeness, arank condition which has been used recently in several nonparametric instrumental problems.Even if the conditional independence between the instrument and the selection fails,the approach provides sharp bounds on parameters of interest under weaker monotonicityconditions. Apart from identification, nonparametric and parametric estimation is also considered.Eventually, the method is applied to estimate the effect of grade retention in Frenchprimary schools.

Pages: 38
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://crest.science/RePEc/wpstorage/2008-23.pdf Crest working paper version (application/pdf)

Related works:
Journal Article: A new instrumental method for dealing with endogenous selection (2010)
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:crs:wpaper:2008-23

Access Statistics for this paper

More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Murielle Jules Maintainer-Email : murielle.jules@ensae.Fr.