BLUE
JR
Julian Reif
@julianreif.bsky.social
Associate Professor Gies College of Business, U. of Illinois Coeditor, American Journal of Health Economics www.julianreif.com
1.2k followers233 following285 posts
JRjulianreif.bsky.social

You could impose the standard (Angrist and Imbens) monotonicity assumption, but this requires assuming that all people respond more to one instrument than another. That is unlikely to hold in a heterogeneous population in most settings.

1

JRjulianreif.bsky.social

Mogstad, Torgovitsky, and Walters (2021) provide an alternative, less restrictive "partial" monotonicity assumption: here, all you need is that each instrument weakly increases treatment probability for each individual. With that assumption, you can then estimate two-stage least squares as usual

1
JR
Julian Reif
@julianreif.bsky.social
Associate Professor Gies College of Business, U. of Illinois Coeditor, American Journal of Health Economics www.julianreif.com
1.2k followers233 following285 posts