On the estimation of treatment effects with endogenous misreporting / Pierre Nguimkeu (Georgia State University), Augustine Denteh (Georgia State University), Rusty Tchernis (Georgia State University, IZA and NBER) ; IZA Institute of Labor Economics
VerfasserNguimkeu, Pierre ; Denteh, Augustine ; Tchernis, Rusty
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, March 2018
Elektronische Ressource
Umfang1 Online-Ressource (48 Seiten) : Diagramme
SerieDiscussion paper ; no. 11426
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
On the estimation of treatment effects with endogenous misreporting [0.45 mb]
Verfügbarkeit In meiner Bibliothek

Participation in social programs is often misreported in survey data, complicating the estimation of the effects of those programs. In this paper, we propose a model to estimate treatment effects under endogenous participation and endogenous misreporting. We show that failure to account for endogenous misreporting can result in the estimate of the treatment effect having an opposite sign from the true effect. We present an expression for the asymptotic bias of both OLS and IV estimators and discuss the conditions under which sign reversal may occur. We provide a method for eliminating this bias when researchers have access to information related to both participation and misreporting. We establish the consistency and asymptotic normality of our estimator and assess its small sample performance through Monte Carlo simulations. An empirical example is given to illustrate the proposed method.