IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp10646.html
   My bibliography  Save this paper

Bounds with Imperfect Instruments: Leveraging the Implicit Assumption of Intransitivity in Correlations

Author

Listed:
  • Wiseman, Nathan

    (University of Nevada, Reno)

  • Sorensen, Todd A.

    () (University of Nevada, Reno)

Abstract

Instrumental variables (IV) is an indispensable tool for establishing causal relationships between variables. Recent work has focused on improving bounds for cases when an ideal instrument does not exist. We leverage a principle, "Intransitivity in Correlations," related to an under-utilized property from the statistics literature. From this principle, it is straightforward to obtain new bounds. We argue that these new theoretical bounds become increasingly useful as instruments become increasingly weak or invalid.

Suggested Citation

  • Wiseman, Nathan & Sorensen, Todd A., 2017. "Bounds with Imperfect Instruments: Leveraging the Implicit Assumption of Intransitivity in Correlations," IZA Discussion Papers 10646, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp10646
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp10646.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Aviv Nevo & Adam M. Rosen, 2012. "Identification With Imperfect Instruments," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 659-671, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    instrumental variables; bounding; partial identification; transitivity in correlations;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp10646. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.