TESTING FOR UNOBSERVED HETEROGENEOUS TREATMENT EFFECTS WITH OBSERVATIONAL DATA

DOI10.1017/S0266466622000147arXiv1803.07514OpenAlexW3194675589MaRDI QIDQ6156586FDOQ6156586

Authors: Yu-Chin Hsu, Ta-Cheng Huang, Haiqing Xu 

Publication date: 13 June 2023

Published in: Econometric Theory (Search for Journal in Brave)

Abstract: Unobserved heterogeneous treatment effects have been emphasized in the recent policy evaluation literature (see e.g., Heckman and Vytlacil, 2005). This paper proposes a nonparametric test for unobserved heterogeneous treatment effects in a treatment effect model with a binary treatment assignment, allowing for individuals' self-selection to the treatment. Under the standard local average treatment effects assumptions, i.e., the no defiers condition, we derive testable model restrictions for the hypothesis of unobserved heterogeneous treatment effects. Also, we show that if the treatment outcomes satisfy a monotonicity assumption, these model restrictions are also sufficient. Then, we propose a modified Kolmogorov-Smirnov-type test which is consistent and simple to implement. Monte Carlo simulations show that our test performs well in finite samples. For illustration, we apply our test to study heterogeneous treatment effects of the Job Training Partnership Act on earnings and the impacts of fertility on family income, where the null hypothesis of homogeneous treatment effects gets rejected in the second case but fails to be rejected in the first application.

Full work available at URL: https://arxiv.org/abs/1803.07514

Mathematics Subject Classification ID

Applications of statistics to economics (62P20)

Cites Work

• Weak convergence and empirical processes. With applications to statistics
• Introduction to empirical processes and semiparametric inference
• Semiparametric instrumental variable estimation of treatment response models.
• Recursive partitioning for heterogeneous causal effects
• Making The Most Out Of Programme Evaluations and Social Experiments: Accounting For Heterogeneity in Programme Impacts
• Significance testing in nonparametric regression based on the bootstrap.
• CONSISTENT SPECIFICATION TESTING WITH NUISANCE PARAMETERS PRESENT ONLY UNDER THE ALTERNATIVE
• Identification and Estimation of Local Average Treatment Effects
• A Conditional Kolmogorov Test
• Semiparametric Estimation of Index Coefficients
• Empirical processes indexed by estimated functions
• An IV Model of Quantile Treatment Effects
• Instrumental Variables Estimates of the Effect of Subsidized Training on the Quantiles of Trainee Earnings
• Identification of Treatment Effects Using Control Functions in Models With Continuous, Endogenous Treatment and Heterogeneous Effects
• Identification and estimation of triangular simultaneous equations models without additivity
• Estimating Outcome Distributions for Compliers in Instrumental Variables Models
• Nonparametric Identification under Discrete Variation
• Identification in Nonseparable Models
• Testing conditional independence via empirical likelihood
• A consistent characteristic function-based test for conditional independence
• Nonparametric tests for conditional independence using conditional distributions
• A FLEXIBLE NONPARAMETRIC TEST FOR CONDITIONAL INDEPENDENCE
• MULTIVARIATE LOCAL POLYNOMIAL REGRESSION FOR TIME SERIES:UNIFORM STRONG CONSISTENCY AND RATES
• Testing Conditional Independence Restrictions
• Estimation and inference for distribution functions and quantile functions in treatment effect models
• A NONPARAMETRIC HELLINGER METRIC TEST FOR CONDITIONAL INDEPENDENCE
• Testing conditional independence using maximal nonlinear conditional correlation
• Inference based on conditional moment inequalities
• Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models
• Nonparametric tests of conditional treatment effects with an application to single-sex schooling on academic achievements
• Nonparametric Estimation of Nonadditive Random Functions
• Title not available (Why is that?)
• Structural Equations, Treatment Effects, and Econometric Policy Evaluation1
• Consistent Tests for Stochastic Dominance
• Independence, Monotonicity, and Latent Index Models: An Equivalence Result
• Testing for separability in structural equations
• Identification and estimation of local average derivatives in non-separable models without monotonicity
• Identification of Nonseparable Models Using Instruments With Small Support
• Identification of Nonseparable Triangular Models With Discrete Instruments
• Functional limit theorems for U-processes
• Nonlinear canonical analysis and independence tests
• Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment
• Incorporating covariates in the measurement of welfare and inequality: methods and applications
• Nonparametric identification in nonseparable panel data models with generalized fixed effects
• Testing Additive Separability of Error Term in Nonparametric Structural Models
• Testing the correlated random coefficient model
• TESTING GENERALIZED REGRESSION MONOTONICITY
• Consistent tests for conditional treatment effects
• Counterfactual mapping and individual treatment effects in nonseparable models with binary endogeneity

Cited In (2)

• Estimating unobserved individual heterogeneity using pairwise comparisons
• An omnibus test for detection of subgroup treatment effects via data partitioning

This page was built for publication: TESTING FOR UNOBSERVED HETEROGENEOUS TREATMENT EFFECTS WITH OBSERVATIONAL DATA

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q6156586)