Empirical Economics

, Volume 44, Issue 1, pp 81–109 | Cite as

Nonparametric analysis of treatment effects in ordered response models

Article

Abstract

Treatment analyses based on average outcomes do not immediately generalize to the case of ordered responses because the expectation of an ordinally measured variable does not exist. The proposed remedy in this paper is a shift in focus to distributional effects. Assuming a threshold crossing model on both the ordered potential outcomes and the binary treatment variable, and leaving the distribution of error terms and functional forms unspecified, the paper discusses how the treatment effects can be bounded. The construction of bounds is illustrated in a simulated data example.

Keywords

Nonparametric bounds Causal effects Instrumental variables Endogenous binary regressor Partial identification 

JEL Classification

C14 C25 C35 

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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  1. 1.Socioeconomic InstituteUniversity of ZurichZurichSwitzerland
  2. 2.Institute for Quantitative Social ScienceHarvard UniversityCambridgeUSA

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