2023/12/16 by Denis Chetverikov, Jinyong Hahn, Chetverikov, Denis +5
Economics, Econometrics and Finance · Mathematics · #Advanced Causal Inference Techniques #Econometrics (econ.EM) #Economic Policies and Impacts #Economic and Environmental Valuation #FOS: Economics and business
paper · pdf · doi:10.48550/arxiv.2312.10333
openalex publication_date 2023/12/16 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We propose logit-based IV and augmented logit-based IV estimators that serve as alternatives to the traditionally used 2SLS estimator in the model where both the endogenous treatment variable and the corresponding instrument are binary. Our novel estimators are as easy to compute as the 2SLS estimator but have an advantage over the 2SLS estimator in terms of causal interpretability. In particular, in certain cases where the probability limits of both our estimators and the 2SLS estimator take the form of weighted-average treatment effects, our estimators are guaranteed to yield non-negative weights whereas the 2SLS estimator is not.