Identifying causal effects with subjective ordinal outcomes
Survey questions often ask respondents to select from ordered scales where the meanings of the categories are subjective, leaving each individual free to apply their own definitions when answering. This paper studies the use of these responses as an outcome variable in causal inference, accounting f...
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Zusammenfassung: | Survey questions often ask respondents to select from ordered scales where
the meanings of the categories are subjective, leaving each individual free to
apply their own definitions when answering. This paper studies the use of these
responses as an outcome variable in causal inference, accounting for variation
in the interpretation of categories across individuals. I find that when a
continuous treatment is statistically independent of both i) potential
outcomes; and ii) heterogeneity in reporting styles, a nonparametric regression
of response category number on that treatment variable recovers a quantity
proportional to an average causal effect among individuals who are on the
margin between successive response categories. The magnitude of a given
regression coefficient is not meaningful on its own, but the ratio of local
regression derivatives with respect to two such treatment variables identifies
the relative magnitudes of convex averages of their effects. I find that
comparisons involving discrete treatment variables are not as readily
interpretable, but obtain a partial identification result for such cases under
additional assumptions. I illustrate the results by revisiting the effects of
income comparisons on subjective well-being, without assuming cardinality or
interpersonal comparability of responses. |
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DOI: | 10.48550/arxiv.2212.14622 |