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LEEBOUNDS: Stata module for estimating Lee (2009) treatment effect bounds

Author

Listed:
  • Harald Tauchmann

    (University of Erlangen-Nuremberg, Germany)

Programming Language

Stata

Abstract

leebounds computes treatment effect bounds for samples with non-random sample selection/attrition as proposed by Lee (Review of Economic Studies, 2009). The lower and upper bound, respectively, correspond to extreme assumptions about the missing information that are consistent with the observed data. As opposed to parametric approaches to correcting for sample selection bias, such as the classical Heckman (1979) estimator, Lee (2009) bounds rest on very few assumptions, i.e. random assignment of treatment and monotonicity. Monotonicity means that the treatment status affects selection in just one direction. That is, receiving a treatment makes selection either more or less likely for any observation. In technical terms, the approach rests on a trimming procedure. Either from below or from above, the group (treatment, control) that suffers less from sample attrition is trimmed at the quantile of the outcome variable that corresponds to the share of 'excess observations' in this group. Calculating group differentials in mean outcome yields the lower and the upper bound, respectively, for the treatment effect depending on whether trimming is from below or above. leebounds assumes that it is unknown, a priori, which group (treatment, control) is subject to the higher selection probability and estimates this from data (see Lee, 2009:1090).

Suggested Citation

  • Harald Tauchmann, 2012. "LEEBOUNDS: Stata module for estimating Lee (2009) treatment effect bounds," Statistical Software Components S457477, Boston College Department of Economics, revised 25 Jul 2013.
  • Handle: RePEc:boc:bocode:s457477
    Note: This module should be installed from within Stata by typing "ssc install leebounds". The module is made available under terms of the GPL v3 (https://www.gnu.org/licenses/gpl-3.0.txt). Windows users should not attempt to download these files with a web browser.
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    File URL: http://fmwww.bc.edu/repec/bocode/l/leebounds.ado
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    File URL: http://fmwww.bc.edu/repec/bocode/l/leebounds.sthlp
    File Function: help file
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    File URL: http://fmwww.bc.edu/repec/dsug2012/desug12_tauchmann.pdf
    File Function: documentation
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    Citations

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    Cited by:

    1. Asiedu, Edward, 2016. "Coming home without supplies: Impact of household needs on bribe involvement and gender gaps," GlobalFood Discussion Papers 229587, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Singh, Prakarsh & Mitra, Sandip, 2016. "Performance Pay and Malnutrition," IZA Discussion Papers 10084, Institute of Labor Economics (IZA).
    3. Prakarsh Singh & Sandip Mitra, 2015. "Performance Pay and Malnutrition: Evidence from an Experiment targeting Child Malnutrition in West Bengal," NCID Working Papers 05/2015, Navarra Center for International Development, University of Navarra.

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