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Université de Fribourg

Testing instrument validity for LATE identification based on inequality moment constraints

Huber, Martin ; Mellace, Giovanni

In: Review of economics and statistics, 2015, vol. 97, no. 2, p. 398-411

We derive testable implications of instrument validity in just identified treat- ment effect models with endogeneity and consider several tests. The identifying assump- tions of the local average treatment effect allow us to both point identify and bound the mean potential outcomes (i) of the always takers under treatment and (ii) of the never takers under non-treatment. The point identified...