Relaxing monotonicity in the identification of local average treatment effects

Martin Huber, Giovanni Mellace

Publikation: Working paperForskning


In heterogeneous treatment effect models with endogeneity, the identification of the local average treatment effect (LATE) typically relies on an instrument that satisfies two conditions: (i) joint independence of the potential post-instrument variables and the instrument and (ii) monotonicity of the treatment in the instrument, see Imbens and Angrist (1994). We show that identification is still feasible when replacing monotonicity by a strictly weaker local monotonicity condition. We demonstrate that the latter allows identifying the LATEs on the (i) compliers (whose treatment reacts to the instrument in the intended way), (ii) defiers (who react counter-intuitively), and (iii) both populations jointly. Furthermore, (i) and (iii) coincides with standard LATE if monotonicity holds. We also present an application to the quarter of birth instrument of Angrist and Krueger (1991).
UdgiverUniversity of St. Gallen, School of Economics and Political Science
StatusUdgivet - 2012


Dyk ned i forskningsemnerne om 'Relaxing monotonicity in the identification of local average treatment effects'. Sammen danner de et unikt fingeraftryk.