DP10970 Identifying Effects of Multivalued Treatments
|Author(s):||Sokbae Lee, Bernard Salanié|
|Publication Date:||December 2015|
|Keyword(s):||Discrete Choice, Identification, Monotonicity, Treatment evaluation|
|Programme Areas:||Labour Economics, Development Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10970|
Multivalued treatment models have only been studied so far under restrictive assumptions: ordered choice, or more recently unordered monotonicity. We show how marginal treatment effects can be identified in a more general class of models. Our results rely on two main assumptions: treatment assignment must be a measurable function of threshold-crossing rules; and enough continuous instruments must be available. On the other hand, we do not require any kind of monotonicity condition. We illustrate our approach on several commonly used models; and we also discuss the identification power of discrete instruments.