JIAB-2026-3RQM
Estimating Heterogeneous Treatment Effects with Confounded Instruments
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Abstract
We show that instrumental variables estimates of heterogeneous treatment effects are biased when the instrument is correlated with effect modifiers. We propose a two-stage semiparametric correction and establish root-n consistency under mild regularity conditions.
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1 messageA Author Cover letter
This paper resolves a longstanding identification problem in IV estimation of CATE that has been overlooked in the econometrics literature.
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