Exploring comparative effect heterogeneity with instrumental variables: prehospital intubation and mortality
We highlight the role of local instrumental variable (LIV) methods in exploring treatment effect heterogeneity using an empirical example of evaluating the use versus non-use of prehospital intubation (PHI) in patients with traumatic injury on inpatient mortality. We find evidence that the effect of PHI on inpatient mortality varies over levels of unobserved confounders giving rise to a phenomenon known as essential heterogeneity. Under essential heterogeneity, the traditional instrumental variable (IV) method, when using a continuous IV, estimates an effect that is an arbitrary weighted average of the casual effects for marginal groups of patients whose PHI receipt are directly influenced by the IV levels. Instead, the LIV methods estimate the distribution of treatment effects for every margin that is identified by data and allow for predictable aggregation to recover estimates for meaningful treatment effect parameters such as the Average Treatment Effect (ATE) and the Effect on the Treated (TT). LIV methods also allow exploring heterogeneity in treatment effects over levels of observed confounders. In the PHI analysis, we estimate an ATE of 0.074. We find strong evidence of positive self-selection in practice based on observed and unobserved characteristics, whereby patients who were most likely to be harmed by PHI were also less likely to receive PHI. However, the degree of positive self-selection mitigates in regions with higher rates of PHI use. We also explore factors associated with the prediction of significant harm by PHI. We provide clinical interpretation of results and discuss the importance of these methods in the context of comparative effectiveness research.
|Date of creation:||Aug 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
More information through EDIRC
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.:
- Anirban Basu & Tomas J. Philipson, 2010.
"The Impact of Comparative Effectiveness Research on Health and Health Care Spending,"
NBER Working Papers
15633, National Bureau of Economic Research, Inc.
- Basu, Anirban & Jena, Anupam B. & Philipson, Tomas J., 2011. "The impact of comparative effectiveness research on health and health care spending," Journal of Health Economics, Elsevier, vol. 30(4), pages 695-706, July.
- James J. Heckman & Edward Vytlacil, 2005.
"Structural Equations, Treatment Effects and Econometric Policy Evaluation,"
NBER Technical Working Papers
0306, National Bureau of Economic Research, Inc.
- James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects, and Econometric Policy Evaluation," Econometrica, Econometric Society, vol. 73(3), pages 669-738, 05.
- James J. Heckman & Edward Vytlacil, 2005. "Structural Equations, Treatment Effects and Econometric Policy Evaluation," NBER Working Papers 11259, National Bureau of Economic Research, Inc.
- Heckman, James J. & Urzua, Sergio & Vytlacil, Edward, 2006.
"Understanding Instrumental Variables in Models with Essential Heterogeneity,"
IZA Discussion Papers
2320, Institute for the Study of Labor (IZA).
- James J. Heckman & Sergio Urzua & Edward Vytlacil, 2006. "Understanding Instrumental Variables in Models with Essential Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 389-432, August.
- James J. Heckman & Sergio Urzua & Edward J. Vytlacil, 2006. "Understanding Instrumental Variables in Models with Essential Heterogeneity," NBER Working Papers 12574, National Bureau of Economic Research, Inc.
- James J. Heckman & Sergio Urzua & Edward Vytlacil, 2009. "Understanding Instrumental Variables in Models with Essential Heterogeneity," Working Papers 200941, Geary Institute, University College Dublin.
- Abbring, Jaap H. & Heckman, James J., 2007. "Econometric Evaluation of Social Programs, Part III: Distributional Treatment Effects, Dynamic Treatment Effects, Dynamic Discrete Choice, and General Equilibrium Policy Evaluation," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 72 Elsevier.
- Basu, Anirban, 2011.
"Economics of individualization in comparative effectiveness research and a basis for a patient-centered health care,"
Journal of Health Economics,
Elsevier, vol. 30(3), pages 549-559, May.
- Anirban Basu, 2011. "Economics of Individualization in Comparative Effectiveness Research and a Basis for a Patient-Centered Health Care," NBER Working Papers 16900, National Bureau of Economic Research, Inc.
- Terza, Joseph V. & Basu, Anirban & Rathouz, Paul J., 2008. "Two-stage residual inclusion estimation: Addressing endogeneity in health econometric modeling," Journal of Health Economics, Elsevier, vol. 27(3), pages 531-543, May.
- James J. Heckman & Vytlacil, Edward J., 2007. "Econometric Evaluation of Social Programs, Part II: Using the Marginal Treatment Effect to Organize Alternative Econometric Estimators to Evaluate Social Programs, and to Forecast their Effects in New," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 71 Elsevier.
- Anirban Basu & James J. Heckman & Salvador Navarro-Lozano & Sergio Urzua, 2007. "Use of instrumental variables in the presence of heterogeneity and self-selection: an application to treatments of breast cancer patients," Health Economics, John Wiley & Sons, Ltd., vol. 16(11), pages 1133-1157.
- James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
When requesting a correction, please mention this item's handle: RePEc:yor:hectdg:11/26. 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: (Jane Rawlings)
If references are entirely missing, you can add them using this form.