Francis DiTraglia (University of Pennsylvania)
| Dates: | 20 October 2016 |
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| Times: | 16:15 - 17:45 |
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| What is it: | Seminar |
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| Organiser: | School of Social Sciences |
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| Speaker: | Francis DiTraglia |
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Title: Estimating the Effect of a Mis-measured, Endogenous, Binary Treatment
Abstract: This paper studies the use of a discrete instrumental variable to identify the causal effect of an endogenous, mis-measured, binary treatment. We begin by showing that the only existing identification result for this case, which appears in Mahajan (2006), is incorrect. As such, identification in this model remains an open question. We first prove that the treatment effect is unidentified based on conditional first-moment information, regardless of the number of values that the instrument may take. We go on to derive a novel partial identification result based on conditional second moments that can be used to test for the presence of mis-classification and to construct simple and informative bounds for the treatment effect. In certain special cases, we can in fact obtain point identification of the treatment effect based on second moment information alone. When this is not possible, we show that adding conditional third moment information point identifies the treatment effect and the measurement error process.
Speaker
Francis DiTraglia
Role: Assistant Professor of Economics
Organisation: University of Pennsylvania
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G6
Humanities Bridgeford Street
Manchester
