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
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.
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
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