Instrument Validity Tests With Causal Forests

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2022
Volume: 40
Issue: 2
Pages: 605-614

Authors (3)

Helmut Farbmacher (Max-Planck-Gesellschaft) Raphael Guber (not in RePEc) Sven Klaassen (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

Assumptions that are sufficient to identify local average treatment effects (LATEs) generate necessary conditions that allow instrument validity to be refuted. The degree to which instrument validity is violated, however, probably varies across subpopulations. In this article, we use causal forests to search and test for such local violations of the LATE assumptions in a data-driven way. Unlike previous instrument validity tests, our procedure is able to detect local violations. We evaluate the performance of our procedure in simulations and apply it in two different settings: parental preferences for mixed-sex composition of children and the Vietnam draft lottery.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:40:y:2022:i:2:p:605-614
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-25