Working Paper

Bounds On Treatment Effects On Transitions


Johan Vikström, Geert Ridder, Martin Weidner

Published Date

22 April 2016


Working Paper (CWP17/16)

This paper considers identifcation of treatment effects on conditional transition probabilities. We show that even under random assignment only the instantaneous average treatment effect is point identified. Because treated and control units drop out at diff erent rates, randomization only ensures the comparability of treatment and controls at the time of randomization, so that long run average treatment effects are not point identified. Instead we derive informative bounds on these average treatment effects. Our bounds do not impose (semi)parametric restrictions, as e.g. proportional hazards. We also explore various assumptions such as monotone treatment response, common shocks and positively correlated outcomes hat tighten the bounds.

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Bounds on treatment effects on transitions
Johan Vikström, Geert Ridder, Martin Weidner