Judging Judge Fixed Effects

Author:

Frandsen Brigham1,Lefgren Lars1,Leslie Emily1

Affiliation:

1. Department of Economics, Brigham Young University (email: )

Abstract

We propose a nonparametric test for the exclusion and monotonicity assumptions invoked in instrumental variable (IV) designs based on the random assignment of cases to judges. We show its asymptotic validity and demonstrate its finite-sample performance in simulations. We apply our test in an empirical setting from the literature examining the effects of pretrial detention on defendant outcomes in New York. When the assumptions are not satisfied, we propose weaker versions of the usual exclusion and monotonicity restrictions under which the IV estimator still converges to a proper weighted average of treatment effects. (JEL H76, K41)

Publisher

American Economic Association

Subject

Economics and Econometrics

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