We provide simple tests for selection on unobserved variables in the Vytlacil-Imbens-Angrist framework for Local Average Treatment Effects. The tests allow researchers not only to test for selection on either or both of the treated and untreated outcomes, but also to assess the magnitude of the...

The Dunning-Kruger effect states that low performers vastly overestimate their performance while high performers more accurately assess their performance. Researchers usually interpret this empirical pattern as evidence that the low skilled are vastly overconfident while the high skilled are...

The ill-posedness of the nonparametric instrumental variable (NPIV) model leads to estimators that may suffer from poor statistical performance. In this paper, we explore the possibility of imposing shape restrictions to improve the performance of the NPIV estimators. We assume that the function...

Whitney Newey and James Powell, founding CeMMAP Fellows, wrote an influential paper on instrumental variable estimation of an additive error non-parametrically specified structural equation, presented at the December 1988 North American Winter Meetings of the Econometric Society. A version...

This study investigates the well-researched relationship between migration and the formation of human capital in the source region using a novel instrument: the existence of a local train station. We make use of Chinese panel data and of the fact that the decision to build a new train station is...

Panel survey participation can bring about unintended changes in respondents' behavior and/or reporting of behavior. Using administrative data linked to a large panel survey, we analyze changes in respondents' labor market behavior. We estimate the causal effect of panel participation on the...