Options
Instrumental variables in models with multiple outcomes : the general unordered case
Date Issued
2008-12-15
Date Available
2010-02-05T17:08:35Z
Abstract
This paper develops the method of local instrumental variables for models with multiple, unordered treatments when treatment choice is determined by a nonparametric version of the multinomial choice model. Responses to interventions are permitted to be heterogeneous in a general way and agents are allowed to select a treatment (e.g. participate in a program) with at least partial knowledge of the idiosyncratic response to the treatments. We define treatment effects in a general model with multiple treatments as differences in counterfactual outcomes that would have been observed if the agent faced different choice sets. We show how versions of local instrumental variables can identify the corresponding treatment parameters. Direct application of local instrumental variables identifies the marginal treatment effect of one option versus the next best alternative without requiring knowledge of any structural parameters from the choice equation or any large support assumptions. Using local instrumental variables to identify other treatment parameters requires either large support assumptions or knowledge of the latent index function of the multinomial choice model.
Sponsorship
National Science Foundation
National Institutes of Health
Type of Material
Working Paper
Publisher
University College Dublin. Geary Institute
Series
UCD Geary Institute Discussion Paper Series
WP/30/2008
Classification
C31
Subject – LCSH
Instrumental variables (Statistics)
Multivariate analysis
Mathematical statistics
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
File(s)
Owning collection
Views
1638
Last Month
1
1
Acquisition Date
Mar 19, 2024
Mar 19, 2024
Downloads
364
Last Week
1
1
Last Month
5
5
Acquisition Date
Mar 19, 2024
Mar 19, 2024