Monotone Treatment Selection Sample Clauses

Monotone Treatment Selection. The Monotone Treatment Selection (MTS) assumption places some structure on the relationship between potential outcomes and treatment assignment (Xxxxxx and Pepper 2000). Specifically, the MTS assumption posits that countries that select into the WTO are more likely to participate in MEAs regardless of membership status. This assumption – indicative of positive selection into the WTO – is relatively innocuous given that countries may opt for participation in both MEAs and the WTO in order to signal credibility (Xxxxxx and Xxxxx 2011) or a pro-growth stance (Xxxx and Xxx 2009) to potential investors. Following Xxxxxxx et al. (2012), this assumption translates to P [M (1) = 1|WTO∗ = 1] ≥ P [M (1) = 1|WTO∗ = 0] (19) P [M (0) = 1|WTO∗ = 1] ≥ P [M (0) = 1|WTO∗ = 0] (20) where M (·) = 1 represents MEA participation. Imposing MTS, the upper bound of the ATE is given by the upper bound of the ATE under exogenous selection and the lower bound is given by the lower bound under no selection assumptions. As such, under the assumption of arbitrary errors the upper bound of the ATE is given in equation