Average Treatment Effect Bounds with an Instrumental Variable: Theory and Practice

Description

This book reviews recent approaches forpartial identification of average treatment effects with instrumental variables in the program evaluation literature, including Manski’s bounds, bounds based on threshold crossing models, and bounds based on the Local Average Treatment Effect (LATE) framework. It compares these bounds across different sets of assumptions, surveys relevant methods to assess the validity of these assumptions, and discusses estimation and inference methods for the bounds. The book also reviews some empirical applications employing bounds in the program evaluation literature. It aims to bridge the gap between the econometric theory on which the different bounds are based and their empirical application to program evaluation. Front Matter ....Pages i-vii Introduction (Carlos A. Flores, Xuan Chen)....Pages 1-5 Econometric Framework (Carlos A. Flores, Xuan Chen)....Pages 7-12 Bounds Under Different Identification Assumptions (Carlos A. Flores, Xuan Chen)....Pages 13-40 Comparison of Bounds Across Different Assumptions (Carlos A. Flores, Xuan Chen)....Pages 41-54 Assessment of Validity of Different Assumptions (Carlos A. Flores, Xuan Chen)....Pages 55-74 Estimation and Inference (Carlos A. Flores, Xuan Chen)....Pages 75-84 Empirical Applications of Bounds (Carlos A. Flores, Xuan Chen)....Pages 85-97 Conclusion (Carlos A. Flores, Xuan Chen)....Pages 99-104