Speaker: Associate Professor Jiang Shuo (The Wang Yanan Institute for Studies in Economics,Xiamen University)

Host: Assistant Professor Yang Cheng (Li Anmin Insititute of Economic, Liaoning University)

Guest introduction: Associate Professor He Zhenyu (Li Anmin Insititute of Economic, Liaoning University)

Time: May 17th, 2024 (Friday) 10:00-11:30 (Beijing time)

Location: Conference Room, 1st Floor, Wuzhou Park, Chongshan Campus, Liaoning University

Online Venue: Tencent Meeting: 573-887-734

Language: Chinese/English

Abstract：In this paper, we study the identification and estimation of treatment effects using instrumental variable that does not satisfy the exclusion restriction. In the absence of exclusion restriction, we show that a new type of treatment effect called the “local average treatment effect on the encouraged outcome” is point identified and it coincides with LATE when the exclusion restriction actually hold. Testable restrictions for the exclusion restriction are derived. When the effects are homogeneous, we propose different causal reduced form characterizations of the treatment effect as population regression coefficient and propose several two-step semiparametric estimators that are root-N consistent and asymptotically normal. Monte Carlo simulations demonstrates the finite sample efficacy of our estimators and tests.

Introduction to the speaker:

Jiang Shuo is an assistant professor at The Wang Yanan Institute for Studies in Economics,Xiamen University, and has a PhD in economics from the University of Washington, USA. His main research areas are microeconometrics and empirical industrial organisation. He has presided over one Youth Fund for Humanities and Social Sciences of the Ministry of Education.