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A test of the selection on observables assumption using a discontinuously distributed covariate

  • Umair Khalil
  • , Neşe Yıldız

    Research output: Contribution to journalArticleResearchpeer-review

    Abstract

    We present a test of the selection on observables assumption that neither requires instruments nor excluded covariates from the structural function. Instead, we rely on the presence of a discontinuously distributed variable among the set of controls. We develop formal testing procedures for a non-parametric additively separable model for binary and finite treatment variables. We also outline a nonparametric nonseparable extension. Our test is easy to implement and should be useful in many empirical settings. Specifically, we employ it to study selection concerns in the estimation of the impact of a nutritional aid program for pregnant women on birth weight.

    Original languageEnglish
    Pages (from-to)423-450
    Number of pages28
    JournalJournal of Econometrics
    Volume226
    Issue number2
    DOIs
    Publication statusPublished - Feb 2022

    Keywords

    • Essential heterogeneity
    • Partial effects
    • Selection on observables
    • Testing

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