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- Title
A review of instrumental variables estimation of treatment effects in the applied health sciences.
- Abstract
Abstract  Health scientists often use observational data to estimate treatment effects when controlled experiments are not feasible. A limitation of observational research is non-random selection of subjects into different treatments, potentially leading to selection bias. The two commonly used solutions to this problemâcovariate adjustment and fully parametric modelsâare limited by strong and untestable assumptions. Instrumental variables (IV) estimation can be a viable alternative. In this paper, I review examples of the application of IV in the health sciences, I show how the IV estimator works, I discuss the factors that affect its performance, I review how the interpretation of the IV estimator changes when treatment effects vary by individual, and consider the application of IV to nonlinear models.
- Subjects
ESTIMATION theory; STATISTICAL correlation; INSTRUMENTAL variables (Statistics); MATHEMATICAL variables
- Publication
Health Services & Outcomes Research Methodology, 2007, Vol 7, Issue 3/4, p159
- ISSN
1387-3741
- Publication type
Article
- DOI
10.1007/s10742-007-0023-6