Nonparametric IV Estimation of Local Average Treatment Effects with Covariates

Markus Frölich ()

No 588, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper nonparametric instrumental variable estimation of local average treatment effects (LATE) is extended to incorporate confounding covariates. Estimation of local average treatment effects is appealing since their identification relies on much weaker assumptions than the identification of average treatment effects in other nonparametric instrumental variable models. Including covariates in the estimation of LATE is necessary when the instrumental variable itself is endogenous (e.g. when the instrument is self-selected). However, all previous approaches to handle covariates in the estimation of LATE rely on parametric or semiparametric methods. In this paper, a nonparametric estimator for the estimation of LATE with covariates is suggested that is root-n asymptotically normal and efficient.

Keywords: treatment effect; evaluation; matching; unobserved heterogeneity; instrumental variables; LATE (search for similar items in EconPapers)
JEL-codes: C13 C14 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2002-09
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Citations: View citations in EconPapers (4)

Published - published in: Journal of Econometrics, 2007, 139 (1), 35-75

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Related works:
Journal Article: Nonparametric IV estimation of local average treatment effects with covariates (2007)
Working Paper: Nonparametric IV estimation of local average treatment effects with covariates (2002)
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