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Genetic markers as instrumental variables

Stephanie von Hinke (), George Davey Smith, Debbie A. Lawlor, Carol Propper and Frank Windmeijer ()

Journal of Health Economics, 2016, vol. 45, issue C, 131-148

Abstract: The use of genetic markers as instrumental variables (IV) is receiving increasing attention from economists, statisticians, epidemiologists and social scientists. Although IV is commonly used in economics, the appropriate conditions for the use of genetic variants as instruments have not been well defined. The increasing availability of biomedical data, however, makes understanding of these conditions crucial to the successful use of genotypes as instruments. We combine the econometric IV literature with that from genetic epidemiology, and discuss the biological conditions and IV assumptions within the statistical potential outcomes framework. We review this in the context of two illustrative applications.

Keywords: ALSPAC; Genetic variants; Instrumental variables; Mendelian randomization; Potential outcomes (search for similar items in EconPapers)
JEL-codes: C36 I1 I2 (search for similar items in EconPapers)
Date: 2016
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Working Paper: Genetic Markers as Instrumental Variables (2011) Downloads
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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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