In cases of non-compliance with a prescribed treatment, estimates of causal effects typically rely on instrumental variables. However, when participation is also misreported, this approach can be severely biased. We provide an instrumental variable method that researchers can use to identify the...

This paper exploits the experimental set-up of the cash transfer program PROGRESA in rural Mexico to estimate a collective model of the household in order to investigate how parents allocate household resources. We show that household decisions are compatible with the collective model at the...