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When cases are assigned to judges at random, the judge's leniency is an instrument for the decision (detention, a custodial sentence): the difference in outcomes between lenient and strict judges over the difference in decisions is the Wald ratio (Imbens and Angrist 1994). It is the average effect on the compliers, the cases whose decision depends on the judge, only if no case defies (is detained by the lenient judge and released by the strict one). With a share of defiers s whose effect is e, the compliers number the first stage plus s and their effect is (wald * fs + s * e) / (fs + s); sens gives it over a grid, so a reader sees how far the conclusion rests on monotonicity (de Chaisemartin 2017). Code z so that the first stage is positive (1 for the judge whose decision is more often 1); with a negative one the complier share is negative and ceff is NA.

Usage

jdgiv(z = NULL, d, y, w = NULL, dsh = c(0, 0.05, 0.1), deff = 0)

Arguments

z

NULL, or the instrument of each case: 0 for the strict judge, 1 for the lenient (or FALSE, TRUE).

d

The decision of each case: 0 or 1; with z = NULL, two columns (a matrix or data frame), the decisions under the strict and under the lenient judge.

y

The outcome of each case: numbers; with z = NULL, two columns, the outcomes without and with the decision.

w

NULL, or a weight from 0 for each case.

dsh

Defier shares for the sensitivity grid: shares from 0 to 1.

deff

Defier effects for the sensitivity grid: numbers.

Value

An object of class jdgiv, a list: type ("obs" or "pop"); est, a named vector (observed: fs the first stage, itt, wald; population: itt, fs, wald, ate); shares (observed: complier, always, never if no one defies; population: also defier); and sens (observed: dsh, deff, cshare the complier share, ceff their effect) or effects (population: the mean effect of each type, NA for an empty one).

Details

Given the decisions and outcomes of a whole population under both judges (z = NULL, d and y two columns each), the exact decomposition: the shares and mean effects of compliers, defiers, always- and never-takers, the intention-to-treat effect and the first stage, whose ratio is the compliers' effect when there are no defiers. See proof("jdgiv").

References

Imbens, G. W. and Angrist, J. D. (1994). Identification and estimation of local average treatment effects. Econometrica, 62(2), 467-475. doi:10.2307/2951620

de Chaisemartin, C. (2017). Tolerating defiance? Local average treatment effects without monotonicity. Quantitative Economics, 8(2), 367-396. doi:10.3982/QE601

Examples

set.seed(7)
z <- rbinom(1000, 1, 0.5)
d <- rbinom(1000, 1, ifelse(z == 1, 0.3, 0.5))
y <- rbinom(1000, 1, 0.2 + 0.1 * d)
jdgiv(z, d, y)
#> jdgiv: observed 
#>          fs         itt        wald 
#> -0.17071258  0.01969084 -0.11534496 
#>   complier     always      never 
#> -0.1707126  0.4723320  0.6983806 
#>   dsh deff      cshare ceff
#>  0.00    0 -0.17071258   NA
#>  0.05    0 -0.12071258   NA
#>  0.10    0 -0.07071258   NA