Skip to main page content
U.S. flag

An official website of the United States government

Dot gov

The .gov means it’s official.
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

Https

The site is secure.
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Access keys NCBI Homepage MyNCBI Homepage Main Content Main Navigation
Review
. 2011 Feb;20(2):127-46.
doi: 10.1002/hec.1572.

That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research

Michael T French  1 , Ioana Popovici
Affiliations
Review

That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research

Michael T French et al. Health Econ. 2011 Feb.

Abstract

The primary statistical challenge that must be addressed when using cross-sectional data to estimate the consequences of consuming addictive substances is the likely endogeneity of substance use. While economists are in agreement on the need to consider potential endogeneity bias and the value of instrumental variables estimation, the selection of credible instruments is a topic of heated debate in the field. Rather than attempt to resolve this debate, our paper highlights the diversity of judgments about what constitutes appropriate instruments for substance use based on a comprehensive review of the economics literature since 1990. We then offer recommendations related to the selection of reliable instruments in future studies.

PubMed Disclaimer

Conflict of interest statement

CONFLICTS OF INTEREST

There are no potential conflicts arising from financial and personal relationships of the authors.

References

    1. Alexandre PK, French MT. Further evidence on the labor market effects of addiction: chronic drug use and employment in metropolitan Miami. Contemporary Economic Policy. 2004;22:382–393.
    1. American Chamber of Commerce Researchers Association (ACCRA) ACCRA Cost of Living Index. The Council for Community and Economic Research; 2007. Available at: http://www.coli.org/
    1. Anderson TW, Hsiao C. Formulation and estimation of dynamic models using panel data. Journal of Econometrics. 1982;18:578–606.
    1. Andrews DWK, Moreira MJ, Stock JH. Optimal two-sided invariant similar tests for instrumental variables regression. Econometrica. 2006;74:715–752.
    1. Andrews DWK, Stock JH. Cowles Foundation Discussion Paper No. 1530. Yale University: 2005. Inference with weak instruments.

Publication types

MeSH terms