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

59 Pages Posted: 9 Jun 2005

See all articles by Azeem Shaikh

Azeem Shaikh

Stanford University - Department of Economics

Edward Vytlacil

Yale University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: May 2005

Abstract

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.

Suggested Citation

Shaikh, Azeem and Vytlacil, Edward J., Threshold Crossing Models and Bounds on Treatment Effects: A Nonparametric Analysis (May 2005). NBER Working Paper No. t0307. Available at SSRN: https://ssrn.com/abstract=720401

Azeem Shaikh

Stanford University - Department of Economics ( email )

Landau Economics Building
579 Serra Mall
Stanford, CA 94305-6072
United States

Edward J. Vytlacil (Contact Author)

Yale University - Department of Economics ( email )

28 Hillhouse Ave
New Haven, CT 06520-8281
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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