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Université de Fribourg

Sensitivity checks for the local average treatment effect

Huber, Martin Huber

In: Economics letters, 2014, vol. 123, no. 2, p. 220-223

The nonparametric identification of the local average treatment effect (LATE) hinges on the satisfaction of three instrumental variable assumptions: (1) Unconfounded assignment of the instrument, (2) no average direct effect of the instrument on the outcome within compliance types (exclusion restric- tion), and (3) weak monotonicity of the treatment in the instrument. While (1) often appears...