JSM 2012 Home

JSM 2012 Online Program

The views expressed here are those of the individual authors and not necessarily those of the JSM sponsors, their officers, or their staff.

Online Program Home

Abstract Details

Activity Number: 474
Type: Contributed
Date/Time: Wednesday, August 1, 2012 : 8:30 AM to 10:20 AM
Sponsor: Section on Bayesian Statistical Science
Abstract - #305741
Title: A Performance Comparison of Methods for Instrumental Variables Regression When Treatment Is Binary
Author(s): Jessica Pruszynski*+ and Purushottam Laud and Rodney Sparapani and Robert McCulloch
Companies: Medical College of Wisconsin and Medical College of Wisconsin and Medical College of Wisconsin and The University of Texas
Address: , , ,
Keywords: Bayesian methods ; instrumental variables ; binary data ; comparative effectiveness research ; Markov chain Monte Carlo

Instrumental variable methods are used to estimate causal relationships when performing a randomized experiment is not possible. Traditional instrumental variable methods in econometrics do not account for the presence of a binary or categorical variable. In this paper, we consider an instrumental variables model in which the treatment is a binary variable. We compare the performance of a two stage least squares moment based approach to a model-based Bayesian approach under two scenarios. In the first scenario, we ignore the binary treatment and proceed with the analysis as if the treatment were continuous. In the second scenario, we apply the correct model with the knowledge that the treatment is binary. Under both conditions, we compare, using repeated data simulation, the moment-based and Bayesian approaches using such quantities as power, bias, mean squared error, and confidence/credible interval length and coverage.

The address information is for the authors that have a + after their name.
Authors who are presenting talks have a * after their name.

Back to the full JSM 2012 program

2012 JSM Online Program Home

For information, contact jsm@amstat.org or phone (888) 231-3473.

If you have questions about the Continuing Education program, please contact the Education Department.