Economics Working Papers

Publication Date

6-18-2021

Number

21011

Abstract

This paper studies identification of the marginal treatment effect (MTE) when a binary treatment variable is misclassified. We show under standard assumptions that the MTE is identified as the derivative of the conditional expectation of the observed outcome given the true propensity score, which is partially identified. We characterize the identified set for this propensity score, and then for the MTE. We use our MTE bounds to derive bounds on other commonly used parameters in the literature. We show that our bounds are tighter than the existing bounds for the local average treatment effect. We illustrate the practical relevance of our derived bounds through some numerical and empirical results.

JEL Classification

C14, C31, C35, C36

Version History

Original Release Date: June 18, 2021

Departments

Department of Economics, Iowa State University

File Format

application/pdf

Length

52 pages

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