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Interacting Treatments With Endogenous Takeup
Title / Series / Name
Publication Volume
Publication Issue
Pages
Editors
Keywords
causal inference
instrumental variables
interaction
non-compliance
Social Sciences (miscellaneous)
Economics and Econometrics
instrumental variables
interaction
non-compliance
Social Sciences (miscellaneous)
Economics and Econometrics
URI
https://hdl.handle.net/20.500.14018/27087
Abstract
We study causal inference in randomized experiments (or quasi-experiments) following a (Formula presented.) factorial design. There are two treatments, denoted (Formula presented.) and (Formula presented.), and units are randomly assigned to one of four categories: treatment (Formula presented.) alone, treatment (Formula presented.) alone, joint treatment, or none. Allowing for endogenous non-compliance with the two binary instruments representing the intended assignment, as well as unrestricted interference across the two treatments, we derive the causal interpretation of various instrumental variable estimands under more general compliance conditions than in the literature. In general, if treatment takeup is driven by both instruments for some units, it becomes difficult to separate treatment interaction from treatment effect heterogeneity. We provide auxiliary conditions and various bounding strategies that may help zero in on causally interesting parameters. We apply our results to a program randomly offering two different treatments to first-year college students, namely, tutoring and financial incentives, in order to assess the effect of the treatments on academic performance.
Topic
Publisher
Place of Publication
Type
Journal article
Date
2025-02-20
Language
ISBN
Identifiers
10.1002/jae.3120