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Instrumental Variables: An Econometrician's Perspective

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  • Imbens, Guido W.

    (Stanford University)

Abstract

I review recent work in the statistics literature on instrumental variables methods from an econometrics perspective. I discuss some of the older, economic, applications including supply and demand models and relate them to the recent applications in settings of randomized experiments with noncompliance. I discuss the assumptions underlying instrumental variables methods and in what settings these may be plausible. By providing context to the current applications a better understanding of the applicability of these methods may arise.

Suggested Citation

  • Imbens, Guido W., 2014. "Instrumental Variables: An Econometrician's Perspective," IZA Discussion Papers 8048, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8048
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    More about this item

    Keywords

    simultaneous equations models; randomized experiments; potential outcomes; noncompliance; selection models; instrumental variables;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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