Arbeitspapier

Bounding sets for treatment effects with proportional selection

In linear econometric models with proportional selection on unobservables, omitted variable bias in estimated treatment effects are roots of a cubic equation involving estimated parameters from a short and intermediate regression, the former excluding and the latter including all observable controls. The roots of the cubic are functions of ffi, the degree of proportional selection on unobservables, and Rmax, the R-squared in a hypothetical long regression that includes the unobservable confounder and all observable controls. In this paper a simple method is proposed to compute roots of the cubic over meaningful regions of the ffi-Rmax plane and use the roots to construct bounding sets for the true treatment effect. The proposed method is illustrated with both a simulated and an observational data set.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 2021-10

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Thema
treatment effect
omitted variable bias

Ereignis
Geistige Schöpfung
(wer)
Basu, Deepankar
Ereignis
Veröffentlichung
(wer)
University of Massachusetts, Department of Economics
(wo)
Amherst, MA
(wann)
2021

DOI
doi:10.7275/22680948
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Basu, Deepankar
  • University of Massachusetts, Department of Economics

Entstanden

  • 2021

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