Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51927
Boes, Stefan (2009). Partial Identification of Discrete Counterfactual Distributions with Sequential Update of Information. Working paper series / Socioeconomic Institute No. 918, University of Zurich.
The credibility of standard instrumental variables assumptions is often under dispute. This paper imposes weak monotonicity in order to gain information on counterfactual outcomes, but avoids independence or exclusion restrictions. The outcome process is assumed to be sequentially ordered, building up and depending on the information level of agents. The potential outcome distribution is assumed to weakly increase (or decrease) with the instrument, conditional on the continuation up to a certain stage. As a general result, the counterfactual distributions can only be bounded, but the derived bounds are informative compared to the no-assumptions bounds thus justifying the instrumental variables terminology. The construction of bounds is illustrated in two data examples.
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|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Socioeconomic Institute (former)
|Dewey Decimal Classification:||330 Economics|
|JEL Classification:||C14, C25, C35|
|Deposited On:||29 Nov 2011 21:07|
|Last Modified:||05 Apr 2016 15:10|
|Series Name:||Working paper series / Socioeconomic Institute|
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