Limited Monotonicity and the Combined Compliers LATE

Nadja van ’t Hoff (), Arthur Lewbel and Giovanni Mellace
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Nadja van ’t Hoff: Department of Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark, https://portal.findresearcher.sdu.dk/en/persons/nadja-van-t-hoff

No 2/2023, Discussion Papers on Economics from University of Southern Denmark, Department of Economics

Abstract: We consider estimating a local average treatment effect given an endogenous binary treat ment and two or more valid binary instruments. We propose a novel limited monotonicity assumption that is generally weaker than alternative monotonicity assumptions considered in the literature, and allows for a great deal of choice heterogeneity. Using this limited mono tonicity, we define and identify the Combined Complier Local Average Treatment Effect (CC-LATE), which is arguably a more policy relevant parameter than the weighted average of LATEs identified by Two Stage Least Squares. We apply our results to estimate the effect of learning one’s HIV status on protective behaviors.

Keywords: Instrumental variable; Local Average Treatment Effect; monotonicity; multiple instruments. (search for similar items in EconPapers)
JEL-codes: C14 C21 C26 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2023-05-24
New Economics Papers: this item is included in nep-mfd
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Citations: View citations in EconPapers (1)

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Working Paper: Limited Monotonicity and the Combined Compliers LATE (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:sdueko:2023_002

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