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Instrumental Variables in Health Services Research

Joseph P. Newhouse

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Abstract

Abstract Instrumental variable (IV) estimators provide consistent estimates of regression coefficients if an explanatory variable or variables are correlated with the error term. They require a variable or variables that do not explain variation in the dependent variable directly but are correlated with those explanatory variables that are correlated with the error term. Although developed for applications in economics, they have recently become popular in health services research.

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What this paper is about

Abstract Instrumental variable (IV) estimators provide consistent estimates of regression coefficients if an explanatory variable or variables are correlated with the error term. They require a variable or variables that do not explain variation in the dependent variable directly but are correlated with those explanatory variables that are correlated with the error term. Although developed for applications in economics, they have recently become popular in health services research.

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Available abstract

Abstract Instrumental variable (IV) estimators provide consistent estimates of regression coefficients if an explanatory variable or variables are correlated with the error term. They require a variable or variables that do not explain variation in the dependent variable directly but are correlated with those explanatory variables that are correlated with the error term. Although developed for applications in economics, they have recently become popular in health services research.

Key concepts: Instrumental variable, Variables, Variable (mathematics), Econometrics, Estimator, Term (time), Regression analysis, Statistics

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