TY  - RPRT
        AU  - Nguimkeu, Pierre
AU  - Denteh, Augustine
AU  - Tchernis, Rusty
        TI  - On the Estimation of Treatment Effects with Endogenous Misreporting
        PY  - 2018/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11426
        UR  - https://www.iza.org/index.php/publications/dp11426
        AB  - 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.
        KW  - partial observability
KW  - binary regressor
KW  - treatment effect
KW  - misclassification
KW  - endogeneity
KW  - bias
        ER  -