Given a binary treatment D, a response Y and covariates X, often X interacts with D in an unknown way to make the treatment effect heterogeneous. If D is exogenous, there are various semi-parametric approaches (matching, inverse probability weighting, etc.) to estimate a weighted average of the...

In this article, I develop a novel identification result for estimating the effect of an endogenous treatment using a proxy of an unobserved imperfect instrument. I show that the potential outcomes distributions are partially identified for the compliers. Therefore, I derive sharp bounds on the...

This paper considers the estimation of dynamic causal effects using external instruments and a structural vector-autoregressive model with possibly non-stationary regressors. We provide general conditions under which the asymptotic normal approximation remains valid. In this case, the asymptotic...

Given a binary treatment D, a response Y with its potential versions (Y⁰,Y¹) and covariates X, often D is endogenous. Unless Y is continuous, dealing with a binary endogenous D has been difficult even when an instrument δ is available. This paper shows that, for any form of Y (binary,...

The Great Recession and its aftermath saw the worst relative performance of young firms in at least 35 years. More broadly, as we show, young-firm activity shares move strongly with local economic conditions and local house price growth. In this light, we assess the effects of housing prices and...