Quantitative Economics
Journal Of The Econometric Society
Edited by: Stéphane Bonhomme • Print ISSN: 1759-7323 • Online ISSN: 1759-7331
Edited by: Stéphane Bonhomme • Print ISSN: 1759-7323 • Online ISSN: 1759-7331
Quantitative Economics: Nov, 2019, Volume 10, Issue 4
Karim Chalak
This paper studies measuring various average effects of X on Y in general structural systems with unobserved confounders U, a potential instrument Z, and a proxy W for U. We do not require X or Z to be exogenous given the covariates or W to be a perfect one‐to‐one mapping of U. We study the identification of coefficients in linear structures as well as covariate‐conditioned average nonparametric discrete and marginal effects (e.g., average treatment effect on the treated), and local and marginal treatment effects. First, we characterize the bias, due to the omitted variables U, of (nonparametric) regression and instrumental variables estimands, thereby generalizing the classic linear regression omitted variable bias formula. We then study the identification of the average effects of X on Y when U may statistically depend on X and Z. These average effects are point identified if the average direct effect of U on Y is zero, in which case exogeneity holds, or if W is a perfect proxy, in which case the ratio (contrast) of the average direct effect of U on Y to the average effect of U on W is also identified. More generally, restricting how the average direct effect of U on Y compares in magnitude and/or sign to the average effect of U on W can partially identify the average effects of X on Y. These restrictions on confounding are weaker than requiring benchmark assumptions, such as exogeneity or a perfect proxy, and enable a sensitivity analysis. After discussing estimation and inference, we apply this framework to study earnings equations.
Causality confounding endogeneity omitted variable bias partial identification proxy sensitivity analysis C31 C35 C36
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.