Threshold Crossing Models and Bounds on Treatment Effects: A Nonparametric Analysis

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Empirical Micro Seminar
University of Pennsylvania

3718 Locust Walk
309 McNeil

Philadelphia, PA

United States

Joint with: Econometrics Workshop

This paper considers the evaluation of the average treatment effect of a binary endogenous
regressor on a binary outcome when one imposes a threshold crossing model on both the endogenous regressor and the outcome variable but without imposing parametric functional form or distributional assumptions. Without parametric restrictions, the average effect of the binary
endogenous variable is not generally point identified. This paper constructs sharp bounds on the average effect of the endogenous variable that exploit the structure of the threshold crossing models and any exclusion restrictions. We also develop methods for inference on the resulting
bounds.

For more information, contact Jere Behrman.

Ed Vytlacil

University of Columbia

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