{"title":"Identifying program benefits when participation is misreported","authors":"Denni Tommasi, Lina Zhang","doi":"10.1002/jae.3079","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>In cases of noncompliance with an assigned treatment, estimates of causal effects typically rely on instrumental variables (IV). However, when participation is also misreported, the IV estimand may become a nonconvex combination of local average treatment effects that fails to satisfy even a minimal condition for being causal. The aim of our paper is to generalize the MR-LATE approach. This is an alternative IV estimand that is more robust in cases of noncompliance and nondifferential misclassification of the treatment variable. Our generalization is threefold: First, we incorporate discrete and multiple-discrete instrument(s); second, we consider the use of instrument(s) under a weaker, partial monotonicity condition; third, we provide a general inferential procedure. Under relatively stringent assumptions, MR-LATE is either identical to the IV estimand or less biased than the naïve IV estimand. Under less stringent assumptions, the MR-LATE estimand can identify the sign of the IV estimand. We conclude with the use of a dedicated Stata command, <span>ivreg2m,</span> to assess the return on education in the United Kingdom.</p>\n </div>","PeriodicalId":48363,"journal":{"name":"Journal of Applied Econometrics","volume":"39 6","pages":"1123-1148"},"PeriodicalIF":2.3000,"publicationDate":"2024-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Applied Econometrics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/jae.3079","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
In cases of noncompliance with an assigned treatment, estimates of causal effects typically rely on instrumental variables (IV). However, when participation is also misreported, the IV estimand may become a nonconvex combination of local average treatment effects that fails to satisfy even a minimal condition for being causal. The aim of our paper is to generalize the MR-LATE approach. This is an alternative IV estimand that is more robust in cases of noncompliance and nondifferential misclassification of the treatment variable. Our generalization is threefold: First, we incorporate discrete and multiple-discrete instrument(s); second, we consider the use of instrument(s) under a weaker, partial monotonicity condition; third, we provide a general inferential procedure. Under relatively stringent assumptions, MR-LATE is either identical to the IV estimand or less biased than the naïve IV estimand. Under less stringent assumptions, the MR-LATE estimand can identify the sign of the IV estimand. We conclude with the use of a dedicated Stata command, ivreg2m, to assess the return on education in the United Kingdom.
摘要在不遵守指定治疗的情况下,因果效应的估计通常依赖于工具变量(IV)。然而,当参与情况也被误报时,IV 估计值可能会变成局部平均治疗效果的非凸组合,甚至无法满足因果关系的最低条件。我们的论文旨在推广 MR-LATE 方法。这是一种替代的 IV 估计方法,在出现不合规和治疗变量非差异性误分类的情况下更稳健。我们的概括有三个方面:首先,我们纳入了离散和多重离散工具;其次,我们考虑了在较弱的部分单调性条件下工具的使用;第三,我们提供了一个通用的推断程序。在相对严格的假设条件下,MR-LATE 要么与 IV 估计数相同,要么比天真的 IV 估计数偏差更小。在不太严格的假设条件下,MR-LATE 估计数可以识别 IV 估计数的符号。最后,我们使用专门的 Stata 命令 ivreg2m 来评估英国的教育回报率。
期刊介绍:
The Journal of Applied Econometrics is an international journal published bi-monthly, plus 1 additional issue (total 7 issues). It aims to publish articles of high quality dealing with the application of existing as well as new econometric techniques to a wide variety of problems in economics and related subjects, covering topics in measurement, estimation, testing, forecasting, and policy analysis. The emphasis is on the careful and rigorous application of econometric techniques and the appropriate interpretation of the results. The economic content of the articles is stressed. A special feature of the Journal is its emphasis on the replicability of results by other researchers. To achieve this aim, authors are expected to make available a complete set of the data used as well as any specialised computer programs employed through a readily accessible medium, preferably in a machine-readable form. The use of microcomputers in applied research and transferability of data is emphasised. The Journal also features occasional sections of short papers re-evaluating previously published papers. The intention of the Journal of Applied Econometrics is to provide an outlet for innovative, quantitative research in economics which cuts across areas of specialisation, involves transferable techniques, and is easily replicable by other researchers. Contributions that introduce statistical methods that are applicable to a variety of economic problems are actively encouraged. The Journal also aims to publish review and survey articles that make recent developments in the field of theoretical and applied econometrics more readily accessible to applied economists in general.