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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 9428, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 non-response/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' self-assessed 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: endogeneity; attrition; local average treatment effect; 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-ecm, nep-exp and nep-lab
Date: 2015-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

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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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