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✅ On the Identifying Power of Generalized Monotonicity for Average Treatment Effects -- by Yuehao Bai, Shunzhuang Huang, Sarah Moon, Azeem Shaikh, Edward J. Vytlacil

Science

In the context of a binary outcome, treatment, and instrument, Balke and Pearl (1993, 1997) establish that the monotonicity condition of Imbens and Angrist (1994) has no identifying power beyond instrument exogeneity for average potential outcomes and average treatment effects in the sense that adding it to instrument exogeneity does not decrease the identified sets for those parameters whenever those restrictions are consistent with the distribution of the observable data. This paper shows that this phenomenon holds in a broader setting with a multi-valued outcome, treatment, and instrument, under an extension of the monotonicity condition that we refer to as generalized monotonicity.

nber.org     Sep 23, 2024