Fragility of the Marginal Treatment Effect

Files in This Item:
 File SizeFormat
DownloadWP22_04.pdf682.42 kBAdobe PDF
Title: Fragility of the Marginal Treatment Effect
Authors: Devereux, Paul J.
Permanent link:
Date: 25-Jan-2022
Online since: 2022-02-28T16:47:25Z
Abstract: Many interesting and important economic questions relate to the effects of binary treatments such as starting a college degree or participating in a job training program. The causal effects of these treatments are likely to be heterogeneous and recent research has emphasized the estimation of heterogeneous treatment effects, with a particular focus on Marginal Treatment Effects (MTEs). In this note, I describe why common methods of estimating MTEs of binary treatments can be very sensitive to omitted higher powers of covariates and demonstrate this using simple Monte Carlo simulations. I conclude by discussing approaches that may be useful for researchers to address this problem in practice.
Funding Details: Research Council of Norway
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Start page: 1
End page: 29
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP2022/04
Copyright (published version): 2022 the Author
Keywords: Marginal treatment effectsInstrumental variables
JEL Codes: C26; C01
Language: en
Status of Item: Not peer reviewed
This item is made available under a Creative Commons License:
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Page view(s)

Last Week
Last month
checked on May 21, 2022


checked on May 21, 2022

Google ScholarTM


If you are a publisher or author and have copyright concerns for any item, please email and the item will be withdrawn immediately. The author or person responsible for depositing the article will be contacted within one business day.