What Do Instrumental Variable Models Deliver with Discrete Dependent Variables?

S-Tier
Journal: American Economic Review
Year: 2013
Volume: 103
Issue: 3
Pages: 557-62

Authors (2)

Andrew Chesher (not in RePEc) Adam M. Rosen (Duke University)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

We compare nonparametric instrumental variables (IV) models with linear models and 2SLS methods when dependent variables are discrete. A 2SLS method can deliver a consistent estimator of a Local Average Treatment Effect but is not informative about other treatment effect parameters. The IV models set identify a range of interesting structural and treatment effect parameters. We give set identification results for a counterfactual probability and an Average Treatment Effect in a IV binary threshold crossing model. We illustrate using data on female employment and family size (employed by Joshua Angrist and William Evans (1998)) and compare with their LATE estimates.

Technical Details

RePEc Handle
repec:aea:aecrev:v:103:y:2013:i:3:p:557-62
Journal Field
General
Author Count
2
Added to Database
2026-01-25