Optimal Screening in Experiments with Partial Compliance

Abstract

This note studies optimal experimental design under partial compliance when experimenters can screen participants prior to randomization. Theoretical results show that retaining all compliers and screening out all non-compliers achieves three complementary aims: (i) the Local Average Treatment Effect is the same as the standard 2SLS estimator with no screening; (ii) median bias is minimized; and (iii) statistical power is maximized. In practice, complier status is unobserved. We therefore discuss feasible screening strategies and propose a simple test for screening efficacy. Future work will conduct an experiment to demonstrate the feasibility and advantages of the optimal screening design.