Summary Instrumental variable methods can identify causal effects even when the treatment and outcome are confounded. We study the problem of imperfect measurements of the binary instrumental variable, treatment and outcome. We first consider nondifferential measurement errors, that is, the mismeasured variable does not depend on other variables given its true value. We show that the measurement error of the instrumental variable does not bias the estimate, that the measurement error of the treatment biases the estimate away from zero, and that the measurement error of the outcome biases the estimate toward zero. Moreover, we derive sharp bounds on the causal effects without additional assumptions. These bounds are informative because they exclude zero. We then consider differential measurement errors, and focus on sensitivity analyses in those settings.
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Ignoring measurement errors in social networks
Summary We consider peer effect estimation in social network models where some network links are incorrectly measured. We show that if the number or magnitude of mismeasured links does not grow too quickly with the sample size, then standard instrumental variables estimators that ignore these measurement errors remain consistent, and standard asymptotic inference methods remain valid. These results hold even when the link measurement errors are correlated with regressors or with structural errors in the model. Simulations and real data experiments confirm our results in finite samples. These findings imply that researchers can ignore small numbers of mismeasured links in networks.
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- PAR ID:
- 10492444
- Publisher / Repository:
- The Econometrics Journal
- Date Published:
- Journal Name:
- The Econometrics Journal
- ISSN:
- 1368-4221
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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