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Dime Seminar: On the Estimation of Treatment Effects with Endogenous Misreporting

September 11, 2018

MC 10-100

  • Participation in social programs is often misreported in survey data, complicating the estimation of the effects of those programs. In this paper, we propose a model to estimate treatment effects under endogenous participation and endogenous misreporting. We show that failure to account for endogenous misreporting can result in the estimate of the treatment effect having an opposite sign from the true effect. We present an expression for the asymptotic bias of both OLS and IV estimators and discuss the conditions under which sign reversal may occur. We provide a method for eliminating this bias when researchers have access to information related to both participation and misreporting. We establish the consistency and asymptotic normality of our estimator and assess its small sample performance through Monte Carlo simulations. An empirical example is given to illustrate the proposed method.

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    Assistant Professor - Georgia State University

    Pierre Nguimkeu is an Assistant Professor in the Department of Economics at Georgia State University. He received his PhD from Simon Fraser University and specializes in Econometrics and Development Economics. The underlying theme of his research is to identify the need in the areas of economics, primarily development economics, for better econometric techniques and to develop methodologies to serve that need. His work in Econometrics provides cutting-edge techniques for applied researchers, specifically for inference in small samples and for causal inference. His work in Development Economics focuses on occupational choice and promoting entrepreneurship and productivity, and on analyzing the effects of related public policy, specifically in African countries. His work has been published in several Journal of Development Economics, American Journal of Agricultural Economics, Energy Economics, The B.E. Journal of Macroeconomics, Journal of Statistical Planning & Inference, Communication in Statistics-Theory & Methods, Journal of Time Series Econometrics, Journal of Probability & Statistics, and others.

  • DIME is a World Bank-wide program to generate knowledge on the effectiveness of development policies. Working across 18 thematic areas, DIME collaborates with 300 agencies in 72 countries to improve the effectiveness of policies and programs and strengthen country capacity for real-time evidence-based policy-making. More »


  • TIME: 12:30PM to 2:00PM
  • LOCATION: MC 10-100, World Bank Main Complex
  • CONTACT: Silvia Velez Caroco
  • svelezcaroco@worldbank.org