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Local Average and Marginal Treatment Effects with a Misclassified Treatment

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  • Santiago Acerenza
  • Kyunghoon Ban
  • D'esir'e K'edagni

Abstract

This paper studies identification of the local average and marginal treatment effects (LATE and MTE) with a misclassified binary treatment variable. We derive bounds on the (generalized) LATE and exploit its relationship with the MTE to further bound the MTE. Indeed, under some standard assumptions, the MTE is a limit of the ratio of the variation in the conditional expectation of the observed outcome given the instrument to the variation in the true propensity score, which is partially identified. We characterize the identified set for the propensity score, and then for the MTE. We show that our LATE bounds are tighter than the existing bounds and that the sign of the MTE is locally identified under some mild regularity conditions. We use our MTE bounds to derive bounds on other commonly used parameters in the literature and illustrate the practical relevance of our derived bounds through numerical and empirical results.

Suggested Citation

  • Santiago Acerenza & Kyunghoon Ban & D'esir'e K'edagni, 2021. "Local Average and Marginal Treatment Effects with a Misclassified Treatment," Papers 2105.00358, arXiv.org, revised Sep 2024.
  • Handle: RePEc:arx:papers:2105.00358
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    File URL: http://arxiv.org/pdf/2105.00358
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    References listed on IDEAS

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    Cited by:

    1. Santiago Acerenza, 2024. "Partial Identification of Marginal Treatment Effects with Discrete Instruments and Misreported Treatment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 86(1), pages 74-100, February.
    2. Vitor Possebom, 2021. "Crime and Mismeasured Punishment: Marginal Treatment Effect with Misclassification," Papers 2106.00536, arXiv.org, revised Jul 2023.
    3. Acerenza, Santiago & Ban, Kyunghoon & Kedagni, Desire, 2021. "Marginal Treatment Effects with Misclassified Treatment," ISU General Staff Papers 202106180700001132, Iowa State University, Department of Economics.

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