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Tolerating defiance? Local average treatment effects without monotonicity
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de Chaisemartin, Clement (2017) Tolerating defiance? Local average treatment effects without monotonicity. Quantitative Economics, 8 (2). pp. 367-396. doi:10.3982/QE601 ISSN 1759-7323.
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Official URL: http://dx.doi.org/10.3982/QE601
Abstract
Instrumental variables (IVs) are commonly used to estimate the effects of some treatments. A valid IV should be as good as randomly assigned, it should not have a direct effect on the outcome, and it should not induce any unit to forgo treatment. This last condition, the so‐called monotonicity condition, is often implausible. This paper starts by showing that actually, IVs are still valid under a weaker condition than monotonicity. It then derives conditions that are sufficient for this weaker condition to hold and whose plausibility can easily be assessed in applications. It finally reviews several applications where this weaker condition is applicable while monotonicity is not. Overall, this paper extends the applicability of the IV estimation method.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HB Economic Theory Q Science > QA Mathematics |
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| Divisions: | Faculty of Social Sciences > Economics | ||||||||
| Library of Congress Subject Headings (LCSH): | Monotonic functions , Instrumental variables (Statistics) , Econometrics, Economics -- Mathematical models | ||||||||
| Journal or Publication Title: | Quantitative Economics | ||||||||
| Publisher: | Econometric Society | ||||||||
| ISSN: | 1759-7323 | ||||||||
| Official Date: | July 2017 | ||||||||
| Dates: |
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| Volume: | 8 | ||||||||
| Number: | 2 | ||||||||
| Page Range: | pp. 367-396 | ||||||||
| DOI: | 10.3982/QE601 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Open Access (Creative Commons) | ||||||||
| Date of first compliant deposit: | 8 January 2021 | ||||||||
| Date of first compliant Open Access: | 11 January 2021 |
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