Sensitivity checks for the local average treatment effect

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 123
Issue: 2
Pages: 220-223

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The nonparametric identification of the local average treatment effect (LATE) hinges on the satisfaction of three instrumental variable assumptions: (1) unconfounded assignment of the instrument, (2) no average direct effect of the instrument on the outcome within compliance types (exclusion restriction), and (3) weak monotonicity of the treatment in the instrument. While (1) often appears plausible in experiments when using randomization as instrument for actual participation, (2) and (3) may be controversial. For this reason, this paper proposes easily implementable sensitivity checks to assess the robustness of the LATE to deviations from either the exclusion restriction or monotonicity. An empirical illustration based on female labor supply data is also provided.

Technical Details

RePEc Handle
repec:eee:ecolet:v:123:y:2014:i:2:p:220-223
Journal Field
General
Author Count
1
Added to Database
2026-02-02