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Marginal Treatment Effects with Misclassified Treatment

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  • Acerenza, Santiago
  • Ban, Kyunghoon
  • Kedagni, Desire

Abstract

This paper studies identification of the marginal treatment effect (MTE) when a binary treatment variable is misclassified. We show under standard assumptions that the MTE is identified as the derivative of the conditional expectation of the observed outcome given the true propensity score, which is partially identified. We characterize the identified set for this propensity score, and then for the MTE. We use our MTE bounds to derive bounds on other commonly used parameters in the literature. We show that our bounds are tighter than the existing bounds for the local average treatment effect. We illustrate the practical relevance of our derived bounds through some numerical and empirical results.

Suggested Citation

  • Acerenza, Santiago & Ban, Kyunghoon & Kedagni, Desire, 2021. "Marginal Treatment Effects with Misclassified Treatment," ISU General Staff Papers 202106180700001132, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:202106180700001132
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    References listed on IDEAS

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    Cited by:

    1. Tommasi, Denni & Zhang, Lina, 2024. "Bounding program benefits when participation is misreported," Journal of Econometrics, Elsevier, vol. 238(1).
    2. Santiago Acerenza & Vitor Possebom & Pedro H. C. Sant'Anna, 2023. "Was Javert right to be suspicious? Unpacking treatment effect heterogeneity of alternative sentences on time-to-recidivism in Brazil," Papers 2311.13969, arXiv.org, revised Jan 2025.
    3. 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.
    4. Vitor Possebom, 2021. "Crime and Mismeasured Punishment: Marginal Treatment Effect with Misclassification," Papers 2106.00536, arXiv.org, revised Jul 2023.
    5. Juli'an Mart'inez-Iriarte & Pietro Emilio Spini, 2022. "MTE with Misspecification," Papers 2204.10445, arXiv.org.

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