%0 Generic
%A Kitagawa, T
%C London, UK
%D 2013
%F discovery:10128117
%I Centre for microdata methods and practice (cemmap)
%N 53/13
%T A bootstrap test for instrument validity in heterogeneous treatment effect models
%U https://discovery.ucl.ac.uk/id/eprint/10128117/
%X This paper develops a specification test for the instrument validity conditions in the heterogeneous treatment effect model with a binary treatment and a discrete instrument. A necessary testable implication for the joint restriction of instrument exogeneity and instrument monotonicity is given by nonnegativity of point-identifiable complier’s outcome densities. Our specification test infers this testable implication using a Kolmogorov-Smirnov type test statistic. We provide a bootstrap algorithm to implement the proposed test and show its asymptotic validity. The proposed test procedure can apply to both discrete and continuous outcome cases.
%Z This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions.