Local instrumental variables and latent variable models for identifying and bounding treatment effects.
This paper examines the relationship between various treatment parameters within a latent variable model when the effects of treatment depend on the recipient's observed and unobserved characteristics. We show how this relationship can be used to identify the treatment parameters when they are identified and to bound the parameters when they are not identified.
Heckman
J J
JJ
Department of Economics, University of Chicago, Chicago, IL 60637, USA. jjh@uchicago.edu
Vytlacil
E J
EJ
D006801:Humans; D018803:Models, Economic; D008960:Models, Psychological; D015233:Models, Statistical; D015588:Observer Variation; D016896:Treatment Outcome