AT: Average treatment effect of a binary endogenous variable

Description

AT can be used to calculate the sample average treatment effect of a binary endogenous predictor/treatment, with corresponding confidence intervals.

Usage

AT(x, eq, nm.bin = "", E = TRUE, treat = TRUE, delta = FALSE, prob.lev = 0.05, 
   s.meth = "svd", n.sim = 1000)

Arguments

A fitted SemiParBIVProbit object as produced by SemiParBIVProbit().

Equation containing the binary endogenous predictor of interest.

nm.bin

Name of the binary endogenous variable.

If TRUE, then AT calculates the sample ATE. If FALSE, then it calculates the sample AT for the treated individuals only.

treat

If TRUE, then AT calculates the AT using the treated only. If FALSE, then it calculates the effect on the control group. This only makes sense if used jointly with E = FALSE.

delta

If TRUE then an approximate delta method is used for confidence interval calculation, otherwise Bayesian posterior simulation (the most reliable option, despite a bit slower) is employed. Note that for models involving asymmetr

prob.lev

Probability of the left and right tails of the posterior distribution used for interval calculations.

n.sim

Number of simulated coefficient vectors from the posterior distribution of the estimated model parameters. This is used when delta = FALSE.

s.meth

Matrix decomposition used to determine the matrix root of the covariance matrix. This is used when delta = FALSE. See the documentation of the mvtnorm package for further details.

Value

resIt returns three values: lower confidence interval limit, estimated AT and upper confidence interval limit.
sig.levSignificance level used.
est.ATbWhen delta = FALSE it returns a vector containing simulated values of the average treatment effect. This is used to calculate intervals.

Details

AT measures the sample average difference in outcomes under the treatment (the binary predictor/treatment assumes value 1) and under the control (the binary treatment assumes value 0). See the references below for details.

References

Marra G. and Radice R. (2011), Estimation of a Semiparametric Recursive Bivariate Probit in the Presence of Endogeneity. Canadian Journal of Statistics, 39(2), 259-279. Radice R., Marra G. and M. Wojtys (submitted), Copula Regression Spline Models for Binary Outcomes.

Examples

Run this code

## see examples for SemiParBIVProbit

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