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SSRN Electronic Journal
Article . 2022 . Peer-reviewed
Data sources: Crossref
SSRN Electronic Journal
Article . 2022 . Peer-reviewed
Data sources: Crossref
https://dx.doi.org/10.48550/ar...
Article . 2022
License: arXiv Non-Exclusive Distribution
Data sources: Datacite
EconStor
Research . 2022
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Doubly Robust Estimation of Local Average Treatment Effects Using Inverse Probability Weighted Regression Adjustment

Authors: Sloczynski, Tymon; Uysal, Derya; Wooldridge, Jeffrey M.;

Doubly Robust Estimation of Local Average Treatment Effects Using Inverse Probability Weighted Regression Adjustment

Abstract

We revisit the problem of estimating the local average treatment effect (LATE) and the local average treatment effect on the treated (LATT) when control variables are available, either to render the instrumental variable (IV) suitably exogenous or to improve precision. Unlike previous approaches, our doubly robust (DR) estimation procedures use quasi-likelihood methods weighted by the inverse of the IV propensity score - so-called inverse probability weighted regression adjustment (IPWRA) estimators. By properly choosing models for the propensity score and outcome models, fitted values are ensured to be in the logical range determined by the response variable, producing DR estimators of LATE and LATT with appealing small sample properties. Inference is relatively straightforward both analytically and using the nonparametric bootstrap. Our DR LATE and DR LATT estimators work well in simulations. We also propose a DR version of the Hausman test that can be used to assess the unconfoundedness assumption through a comparison of different estimates of the average treatment effect on the treated (ATT) under one-sided noncompliance. Unlike the usual test that compares OLS and IV estimates, this procedure is robust to treatment effect heterogeneity.

Keywords

FOS: Computer and information sciences, one-sided noncompliance, instrumental variables, ddc:330, double robustness, Econometrics (econ.EM), local average treatment effects, Methodology (stat.ME), FOS: Economics and business, C26, C21, Statistics - Methodology, Economics - Econometrics

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    popularity
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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
17
Top 10%
Average
Top 10%
Green