💡Quantile IV💡
Imagine that you are interested in estimating the effect of incarceration on labor earnings. You can use the random allocation of judges and the fact that they have different leniency rates to identify a weighted integral of Marginal Treatment Effects.
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Imagine that you are interested in estimating the effect of incarceration on labor earnings. You can use the random allocation of judges and the fact that they have different leniency rates to identify a weighted integral of Marginal Treatment Effects.
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Comments
One quick way to do so is to look at Quantile Treatment Effects and use IV methods to estimate them.
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If you are interested, check his cool paper with Sun: https://www.cambridge.org/core/journals/econometric-theory/article/abs/smoothed-estimating-equations-for-instrumental-variables-quantile-regression/59EE6581C077098DDBB87F3E98F9BF90
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BTW, apparently this approach is canned in Stata 18.