Giovanni Mellace, University of Southern Denmark

"Limited Monotonicity and the Combined Compliers LATE" 

Abstract

We consider identification of a local average treatment effect given an endogenous binary treatment and two or more valid binary instruments. We propose a novel limited monotonicity assumption that is generally weaker than alternative monotonicity assumptions, and that allows for a great deal of choice heterogeneity. Using this limited monotonicity, we define and identify the combined compliers local average treatment effect (CC-LATE), which is arguably a more policy-relevant parameter than the weighted average of LATEs identified by two-stage least squares. We apply our results to estimate the effect of learning of one’s HIV status on protective behaviors.

Co-authors: Nadja van’t Hoff and Arthur Lewbel

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Contact person: Nikolaj Arpe Harmon