Field Seminar - Econometrics: Lina Zhang (University of Amsterdam)

Title: "Policy Relevant Treatment Effects with Multidimensional Unobserved Heterogeneity" [with Takuya Ura]

  • Date: 17 October 2024 from 15:00 to 16:30

  • Event location: Seminar Room - Piazza Scaravilli, 2 + Microsoft Teams Meeting

Abstract

This paper provides a framework for bounding policy relevant treatment effects using instrumental variables. In the framework, a treatment selection may or may not satisfy the classical monotonicity condition and can accommodate multidimensional unobserved heterogeneity. We can bound the target parameter by extracting information from identifiable estimands. We also provide a more conservative yet computationally simpler bound by applying a convex relaxation method. Linear shape restrictions can be easily incorporated to further improve the bounds. Numerical and simulation results illustrate the informativeness of our convex-relaxation bounds, i.e., that our bounds are sufficiently tight.

Local Organizer: Giovanni Angelini