  We develop point-identification for the local average treatment effect when
the binary treatment contains a measurement error. The standard instrumental
variable estimator is inconsistent for the parameter since the measurement
error is non-classical by construction. We correct the problem by identifying
the distribution of the measurement error based on the use of an exogenous
variable that can even be a binary covariate. The moment conditions derived
from the identification lead to generalized method of moments estimation with
asymptotically valid inferences. Monte Carlo simulations and an empirical
illustration demonstrate the usefulness of the proposed procedure.
