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Identification of multi-valued treatment effects with unobserved heterogeneity (2010.04385v5)
Published 9 Oct 2020 in econ.EM
Abstract: In this paper, we establish sufficient conditions for identifying treatment effects on continuous outcomes in endogenous and multi-valued discrete treatment settings with unobserved heterogeneity. We employ the monotonicity assumption for multi-valued discrete treatments and instruments, and our identification condition has a clear economic interpretation. In addition, we identify the local treatment effects in multi-valued treatment settings and derive closed-form expressions of the identified treatment effects. We provide examples to illustrate the usefulness of our result.