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Treatment Effect Bounds: An Application to Swan-Ganz Catheterization

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Author Info
Jay Bhattacharya
Azeem Shaikh
Edward Vytlacil

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Abstract

We reanalyze data from the observational study by Connors et al. (1996) on the impact of Swan-Ganz catheterization on mortality outcomes. The Connors et al. (1996) study assumes that there are no unobserved differences between patients who are catheterized and patients who are not catheterized and finds that catheterization increases patient mortality. We instead allow for such differences between patients by implementing both the bounds of Manski (1990), which only exploits an instrumental variable, and the bounds of Shaikh and Vytlacil (2004), which exploit mild nonparametric, structural assumptions in addition to an instrumental variable. We propose and justify the use of indicators of weekday admission as an instrument for catheterization in this context. We find that in our application, the Manski (1990) bounds do not indicate whether catheterization increases or decreases mortality, whereas the Shaikh and Vytlacil (2004) bounds reveal that catheterization increases mortality at 30 days and beyond. We also extend the analysis of Shaikh and Vytlacil (2004) to exploit a further nonparametric, structural assumption -- that doctors catheterize individuals with systematically worse latent health -- and find that this assumption further narrows these bounds and strengthens our conclusions.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11263.

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Date of creation: Apr 2005
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Handle: RePEc:nbr:nberwo:11263

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C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General
I1 - Health, Education, and Welfare - - Health

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Manski, C.F., 1990. "The Selection Problem," Working papers 90-12, Wisconsin Madison - Social Systems.
  2. James J. Heckman & Edward J. Vytlacil, 2000. "Local Instrumental Variables," NBER Technical Working Papers 0252, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Charles F. Manski & John V. Pepper, 2000. "Monotone Instrumental Variables, with an Application to the Returns to Schooling," Econometrica, Econometric Society, vol. 68(4), pages 997-1012, July.
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  4. Edward Vytlacil & Nese Yildiz, 2007. "Dummy Endogenous Variables in Weakly Separable Models," Econometrica, Econometric Society, vol. 75(3), pages 757-779, 05. [Downloadable!] (restricted)
  5. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Heckman, James J. & Vytlacil, Edward J., 2000. "The relationship between treatment parameters within a latent variable framework," Economics Letters, Elsevier, vol. 66(1), pages 33-39, January. [Downloadable!] (restricted)
  7. James J. Heckman & Edward J. Vytlacil, 2000. "Instrumental Variables, Selection Models, and Tight Bounds on the Average Treatment Effect," NBER Technical Working Papers 0259, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jay Bhattacharya & William B. Vogt, 2007. "Do Instrumental Variables Belong in Propensity Scores?," NBER Technical Working Papers 0343, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Michael Gerfin & Martin Schellhorn, 2006. "Nonparametric bounds on the effect of deductibles in health care insurance on doctor visits - Swiss evidence," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 1011-1020. [Downloadable!]
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  3. Jay Bhattacharya & Adam Isen, 2008. "On Inferring Demand for Health Care in the Presence of Anchoring, Acquiescence, and Selection Biases," NBER Working Papers 13865, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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