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Genetic markers as instrumental variables

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  • von Hinke, Stephanie
  • Davey Smith, George
  • Lawlor, Debbie A.
  • Propper, Carol
  • Windmeijer, Frank

Abstract

The use of genetic markers as instrumental variables (IV) is receiving increasing attention from economists, statisticians, epidemiologists and social scientists. Although IV is commonly used in economics, the appropriate conditions for the use of genetic variants as instruments have not been well defined. The increasing availability of biomedical data, however, makes understanding of these conditions crucial to the successful use of genotypes as instruments. We combine the econometric IV literature with that from genetic epidemiology, and discuss the biological conditions and IV assumptions within the statistical potential outcomes framework. We review this in the context of two illustrative applications.

Suggested Citation

  • von Hinke, Stephanie & Davey Smith, George & Lawlor, Debbie A. & Propper, Carol & Windmeijer, Frank, 2016. "Genetic markers as instrumental variables," Journal of Health Economics, Elsevier, vol. 45(C), pages 131-148.
    • Handle: RePEc:eee:jhecon:v:45:y:2016:i:c:p:131-148
    DOI: 10.1016/j.jhealeco.2015.10.007
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    More about this item

    Keywords

    ALSPAC; Genetic variants; Instrumental variables; Mendelian randomization; Potential outcomes;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • I1 - Health, Education, and Welfare - - Health
    • I2 - Health, Education, and Welfare - - Education

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