Treatment Effect Estimation Using Nonlinear Two-Stage Instrumental Variable Estimators: Another Cautionary Note.

ABSTRACT:

Objective

To examine the settings of simulation evidence supporting use of nonlinear two-stage residual inclusion (2SRI) instrumental variable (IV) methods for estimating average treatment effects (ATE) using observational data and investigate potential bias of 2SRI across alternative scenarios of essential heterogeneity and uniqueness of marginal patients.

Study design

Potential bias of linear and nonlinear IV methods for ATE and local average treatment effects (LATE) is assessed using simulation models with a binary outcome and binary endogenous treatment across settings varying by the relationship between treatment effectiveness and treatment choice.

Principal findings

Results show that nonlinear 2SRI models produce estimates of ATE and LATE that are substantially

SUBMITTER: Chapman CG 

PROVIDER: S-EPMC5134142 | biostudies-literature | 2016 Dec

REPOSITORIES: biostudies-literature