Using Nonexperimental Methods to Address Noncompliance
Upjohn Institute Working Paper 20-324
38 Pages Posted: 26 May 2020
Date Written: April 27, 2020
Abstract
The analysis compares estimates of the incremental impact for those who receive HPOG with a program enhancement to the standard HPOG program. The experimental benchmark for the incremental impact comes from two-stage least squares with random assignment as an instrumental variable for enhancement take-up. Then, ignoring the randomly assigned conditions, the analysis estimates the counterfactual for those who “take up” the enhancement using ordinary least squares and inverse propensity weighting. The analysis also tests whether adding information that is only available due to the experiment — who complied with their randomization status and who did not — improves the non-experimental estimates. The analysis compares these estimates using statistical tests recommended by the within-study comparison literature.
Keywords: Treatment Effects, Experimental Methods, Nonexperimental Methods, Within-Study Comparison
JEL Classification: C310, J240
Suggested Citation: Suggested Citation