Two-way exclusion restrictions in models with heterogeneous treatment effects

2020 ◽  
Vol 23 (3) ◽  
pp. 345-362
Author(s):  
Shenglong Liu ◽  
Ismael Mourifié ◽  
Yuanyuan Wan

Summary In this paper, we propose a novel method to identify the conditional average treatment effect partial derivative (CATE-PD) in an environment in which the treatment is endogenous, the treatment effect is heterogeneous, the candidate 'instrumental variables' can be correlated with latent errors, and the treatment selection does not need to be (weakly) monotone. We show that CATE-PD is point-identified under mild conditions if two-way exclusion restrictions exist: (a) an outcome-exclusive variable, which affects the treatment but is excluded from the potential outcome equation, and (b) a treatment-exclusive variable, which affects the potential outcome but is excluded from the selection equation. We also propose an asymptotically normal two-step estimator and illustrate our method by investigating how the return to education varies across regions at different levels of development in China.

Biometrika ◽  
2020 ◽  
Vol 107 (4) ◽  
pp. 935-948
Author(s):  
Hanzhong Liu ◽  
Yuehan Yang

Summary Linear regression is often used in the analysis of randomized experiments to improve treatment effect estimation by adjusting for imbalances of covariates in the treatment and control groups. This article proposes a randomization-based inference framework for regression adjustment in stratified randomized experiments. We re-establish, under mild conditions, the finite-population central limit theorem for a stratified experiment, and we prove that both the stratified difference-in-means estimator and the regression-adjusted average treatment effect estimator are consistent and asymptotically normal; the asymptotic variance of the latter is no greater and typically less than that of the former. We also provide conservative variance estimators that can be used to construct large-sample confidence intervals for the average treatment effect.


2020 ◽  
Author(s):  
ZhiMin Xiao ◽  
Oliver P Hauser ◽  
Charlie Kirkwood ◽  
Daniel Z. Li ◽  
Benjamin Jones ◽  
...  

The use of large-scale Randomised Controlled Trials (RCTs) is fast becoming "the gold standard" of testing the causal effects of policy, social, and educational interventions. RCTs are typically evaluated — and ultimately judged — by the economic, educational, and statistical significance of the Average Treatment Effect (ATE) in the study sample. However, many interventions have heterogeneous treatment effects across different individuals, not captured by the ATE. One way to identify heterogeneous treatment effects is to conduct subgroup analyses, such as focusing on low-income Free School Meal pupils as required for projects funded by the Education Endowment Foundation (EEF) in England. These subgroup analyses, as we demonstrate in 48 EEF-funded RCTs involving over 200,000 students, are usually not standardised across studies and offer flexible degrees of freedom to researchers, potentially leading to mixed results. Here, we develop and deploy a machine-learning and regression-based framework for systematic estimation of Individualised Treatment Effect (ITE), which can show where a seemingly ineffective and uninformative intervention worked, for whom, and by how much. Our findings have implications for decision-makers in education, public health, and medical trials.


2018 ◽  
Vol 8 (1) ◽  
Author(s):  
Charles E. Gibbons ◽  
Juan Carlos Suárez Serrato ◽  
Michael B. Urbancic

Abstract We replicate eight influential papers to provide empirical evidence that, in the presence of heterogeneous treatment effects, OLS with fixed effects (FE) is generally not a consistent estimator of the average treatment effect (ATE). We propose two alternative estimators that recover the ATE in the presence of group-specific heterogeneity. We document that heterogeneous treatment effects are common and the ATE is often statistically and economically different from the FE estimate. In all but one of our replications, there is statistically significant treatment effect heterogeneity and, in six, the ATEs are either economically or statistically different from the FE estimates.


2019 ◽  
Vol 30 (3) ◽  
pp. 695-712
Author(s):  
Gabriel González ◽  
Luisa Díez-Echavarría ◽  
Elkin Zapa ◽  
Danilo Eusse

Las instituciones de educación superior deben formar a sus estudiantes según requerimientos del contexto en que se desenvuelven, ya que, sobre la base de su desempeño, es donde se medirá si las políticas de desarrollo socioeconómico son efectivas. Para lograrlo, es necesario identificar el impacto de esa educación en sus egresados, y hacer los ajustes necesarios que generen mejora continua. El objetivo de este artículo es estimar el impacto académico y social de egresados del Instituto Tecnológico Metropolitano – Medellín, a través de un análisis multivariado y la estimación del modelo Average Treatment Effect (ATE). Se encontró que la educación ofrecida a esta población ha generado un impacto académico, asociado a los estudios de actualización, y dos impactos sociales, asociados a la situación laboral y al nivel de ingresos percibidos por los egresados. Se recomienda usar esta metodología en otras instituciones, ya que suele arrojar resultados más informativos y precisos que los estudios tradicionales de caracterización, y se puede medir el efecto de cualquier estrategia.


2021 ◽  
Author(s):  
Mateus C. R. Neves ◽  
Felipe De Figueiredo Silva ◽  
Carlos Otávio Freitas

In this paper we estimate the average treatment effect from access to extension services and credit on agricultural production in selected Andean countries (Bolivia, Peru, and Colombia). More specifically, we want to identify the effect of accessibility, here represented as travel time to the nearest area with 1,500 or more inhabitants per square kilometer or at least 50,000 inhabitants, on the likelihood of accessing extension and credit. To estimate the treatment effect and identify the effect of accessibility on these variables, we use data from the Colombian and Bolivian Agricultural Censuses of 2013 and 2014, respectively; a national agricultural survey from 2017 for Peru; and geographic information on travel time. We find that the average treatment effect for extension is higher compared to that of credit for farms in Bolivia and Peru, and lower for Colombia. The average treatment effects of extension and credit for Peruvian farms are $2,387.45 and $3,583.42 respectively. The average treatment effect for extension and credit are $941.92 and $668.69, respectively, while in Colombia are $1,365.98 and $1,192.51, respectively. We also find that accessibility and the likelihood of accessing these services are nonlinearly related. Results indicate that higher likelihood is associated with lower travel time, especially in the analysis of credit.


2021 ◽  
Author(s):  
Long-Zhou Qin ◽  
Xin Yuan ◽  
Jie Liu ◽  
Meng-yu Wu ◽  
Qi Sun ◽  
...  

Herein, we develop a novel method for the selective alkynylation of cysteine-containing peptides and 1-thioglycoside residues by the use of continuous flow. This method was characterised by the mild conditions...


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