localIV: Estimation of Marginal Treatment Effects using Local
Instrumental Variables
In the generalized Roy model, the marginal treatment effect (MTE) can be used as
a building block for constructing conventional causal parameters such as the average treatment
effect (ATE) and the average treatment effect on the treated (ATT). Given a treatment selection
equation and an outcome equation, the function mte() estimates the MTE via the semiparametric
local instrumental variables method or the normal selection model. The function mte_at() evaluates
MTE at different values of the latent resistance u with a given X = x, and the function mte_tilde_at()
evaluates MTE projected onto the estimated propensity score. The function ace() estimates
population-level average causal effects such as ATE, ATT, or the marginal policy relevant
treatment effect.
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