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Endogeneity and non-response bias in treatment evaluation - nonparametric identification of causal effects by instruments

Hans Fricke, Markus Frölich (), Martin Huber () and Michael Lechner

No 459, FSES Working Papers from Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland

Abstract: This paper proposes a nonparametric method for evaluating treatment effects in the presence of both treatment endogeneity and attrition/non-response bias, using two instrumental variables. Making use of a discrete instrument for the treatment and a continuous instrument for nonresponse/attrition, we identify the average treatment effect on compliers as well as the total population and suggest non- and semiparametric estimators. We apply the latter to a randomized experiment at a Swiss University in order to estimate the effect of gym training on students› selfassessed health. The treatment (gym training) and attrition are instrumented by randomized cash incentives paid out conditional on gym visits and by a cash lottery for participating in the follow-up survey, respectively.

Keywords: local average treatment effect; attrition; endogeneity; weighting; instrument; experiment (search for similar items in EconPapers)
JEL-codes: C14 C21 C23 C24 C26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp
Date: 2015-10-22
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Working Paper: Endogeneity and Non-Response Bias in Treatment Evaluation: Nonparametric Identification of Causal Effects by Instruments (2015) Downloads
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