An IV Model of Quantile Treatment Effects

Abstract
(QTE) in the presence of endogeneity and obtain conditions for identification of the QTE without functional form assumptions. The principal feature of the model is the imposition of conditions which restrict the evolution of ranks across treatment states. This feature allows us to overcome the endogeneity problem and recover the true QTE through the use of instrumental variables. The proposed model can also be equivalently viewed as a structural simultaneous equation model with non-additive errors, where QTE can be interpreted as the structural quantile eects (SQE).