Identification of multi-valued treatment effects with unobserved heterogeneity

In this paper, we establish sufficient conditions for identifying treatment effects on continuous outcomes in endogenous and multi-valued discrete treatment settings with unobserved heterogeneity. We employ the monotonicity assumption for multi-valued discrete treatments and instruments, and our identification condition has a clear economic interpretation. In addition, we identify the local treatment effects in multi-valued treatment settings and derive closed-form expressions of the identified treatment effects. We provide examples to illustrate the usefulness of our result.

Automated summary

In this paper, sufficient conditions for identifying treatment effects on continuous outcomes are established in endogenous and multi-valued discrete treatment settings with unobserved heterogeneity. The monotonicity assumption for multi-valued discrete treatments and instruments is employed, and the identification condition has a clear economic interpretation. Additionally, the local treatment effects in multi-valued treatment settings are identified, and closed-form expressions of the identified treatment effects are derived.