Back to Search
Start Over
When does IV identification not restrict outcomes?
- Publication Year :
- 2024
-
Abstract
- Many identification results in instrumental variables (IV) models hold without requiring any restrictions on the distribution of potential outcomes, or how those outcomes are correlated with selection behavior. This enables IV models to allow for arbitrary heterogeneity in treatment effects and the possibility of selection on gains in the outcome. I provide a necessary and sufficient condition for treatment effects to be point identified in a manner that does not restrict outcomes when the instruments take a finite number of values. The condition generalizes the well-known LATE monotonicity assumption, and unifies a wide variety of other known IV identification results. The result also yields a brute-force approach to reveal all selection models that allow for point identification of treatment effects without restricting outcomes, and then enumerate all of the identified parameters within each such selection model. The search uncovers new selection models that yield identification, provides impossibility results for others, and offers opportunities to relax assumptions on selection used in existing literature.
- Subjects :
- Economics - Econometrics
Subjects
Details
- Database :
- arXiv
- Publication Type :
- Report
- Accession number :
- edsarx.2406.02835
- Document Type :
- Working Paper