Treatment Effects with Censoring and Endogeneity

31 Pages Posted: 2 Apr 2014

See all articles by Brigham R. Frandsen

Brigham R. Frandsen

Brigham Young University - Department of Economics

Date Written: March 29, 2014

Abstract

This paper develops a nonparametric approach to identification and estimation of treatment effects in a setting where observed outcomes are censored and treatment status may be endogenous and have arbitrarily heterogeneous effects. Identification is based on an instrumental variable that satisfies the exclusion and monotonicity conditions standard in the local average treatment effects framework. The paper also proposes a censored quantile treatment effects estimator, derives its asymptotic distribution, and illustrates its performance using Monte Carlo simulations. An empirical application to a subsidized job training program finds that participation significantly and dramatically reduced the duration of jobless spells, especially at the right tail of the distribution.

Keywords: quantile regression, survival analysis, duration data, instrumental variables, local average treatment effects

JEL Classification: C210, C240, C260

Suggested Citation

Frandsen, Brigham R., Treatment Effects with Censoring and Endogeneity (March 29, 2014). Available at SSRN: https://ssrn.com/abstract=2418411 or http://dx.doi.org/10.2139/ssrn.2418411

Brigham R. Frandsen (Contact Author)

Brigham Young University - Department of Economics ( email )

130 Faculty Office Bldg.
Provo, UT 84602-2363
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
56
Abstract Views
585
rank
493,814
PlumX Metrics