A Note on Testing the LATE Assumptions

In this paper we show that the testable implications derived in Huber and Mellace (2013) are the best possible to detect invalid instruments, in the presence of heterogeneous treatment effects and endogeneity. We also provide a formal proof of the fact that those testable implications are only necessary but not sufficient conditions for instrument validity.

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Year of publication:	2015-03-03
Authors:	Laffers, Lukas ; Mellace, Giovanni
Institutions:	Institut for Virksomhedsledelse og Økonomi, Syddansk Universitet
Subject:	Testing IV validity \| Local average treatment effect \| Moment inequalities \| Bounds

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Extent:	application/pdf
Series:	Discussion Papers of Business and Economics.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Discussion Papers of Business and Economics Number 4/2015 6 pages
Classification:	C12 - Hypothesis Testing ; C21 - Cross-Sectional Models; Spatial Models ; c26
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011191538