Monotone Instrumental Variables: With an Application to the Returns to Schooling

2000/07/01 by Charles F. Manski, John V. Pepper · 11 citations
Mathematics · Social Sciences · #Advanced Causal Inference Techniques #Computer science #Covariate #Credibility #Econometrics #Economics #Gender, Labor, and Family Dynamics #Inference #Instrumental variable #Mathematics #Monotone polygon #Respondent #School Choice and Performance #Selection (genetic algorithm) #Variable (mathematics) #Wage

paper · open access · doi:10.1111/1468-0262.00144

published in Econometrica 68(4), 997-1010 (Wiley)

openalex publication_date 2000/07/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/15

Abstract

Econometric analyses of treatment response commonly use instrumental variable (IV) assumptions to identify treatment effects. Yet the credibility of IV assumptions is often a matter of considerable disagreement. There is therefore good reason to consider weaker but more credible assumptions. To this end, we introduce monotone instrumental variable (MIV) assumptions and the important special case of monotone treatment selection (MTS). We study the identifying power of MIV assumptions alone and combined with the assumption of monotone treatment response (MTR). We present an empirical application using the MTS and MTR assumptions to place upper bounds on the returns to schooling

Citations

• Identification and Estimation of Local Average Treatment Effects

Cited by

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• Generalized Optimal Transport
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• Monotone Ecological Inference
• EXTENDING ECONOMIC MODELS WITH TESTABLE ASSUMPTIONS: THEORY AND APPLICATIONS
• Early retirement in the day-care sector: the role of working conditions and health. [europepmc]
• Job loss and psychological distress during the COVID-19 pandemic: Longitudinal Analysis from residents in nine predominantly African American low-income neighborhoods. [europepmc]
• Causal Effects of Schooling on Memory at Older Ages in Six Low- and Middle-Income Countries: Nonparametric Evidence With Harmonized Datasets. [europepmc]

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