Average Monotonicity in a Setting with Covariates

2 Pages Posted: 12 Aug 2023

See all articles by Megan T. Stevenson

Megan T. Stevenson

University of Virginia School of Law

Date Written: August 1, 2023

Abstract

In this brief note I propose a condition called “conditional average monotonicity” that extends the average monotonicity condition from Frandsen et al. (2023) to a setting in which the instrument is only exogenous conditional on covariates. I lean on a proof from Blandhol et al. (2022) to show that, along with exogeneity and “rich covariates,” conditional average monotonicity is sufficient and necessary for the two-stage least squares estimand to be weakly causal in a setting with heterogeneous, nonlinear treatment effects.

Keywords: monotonicity

Suggested Citation

Stevenson, Megan, Average Monotonicity in a Setting with Covariates (August 1, 2023). Available at SSRN: https://ssrn.com/abstract=4528125 or http://dx.doi.org/10.2139/ssrn.4528125

Megan Stevenson (Contact Author)

University of Virginia School of Law ( email )

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