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When Should We (Not) Interpret Linear IV Estimands as LATE?

econ.EM · 2020-11-13 · unverdicted · novelty 7.0

Linear IV estimands can place negative weights on conditional LATEs under weak monotonicity with misspecified reduced forms due to homogeneity restrictions, but the interacted IV specification avoids this.

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  • When Should We (Not) Interpret Linear IV Estimands as LATE? econ.EM · 2020-11-13 · unverdicted · none · ref 34

    Linear IV estimands can place negative weights on conditional LATEs under weak monotonicity with misspecified reduced forms due to homogeneity restrictions, but the interacted IV specification avoids this.