Journal
JOURNAL OF THE AMERICAN STATISTICAL ASSOCIATION
Volume 105, Issue 492, Pages 1285-1296Publisher
AMER STATISTICAL ASSOC
DOI: 10.1198/jasa.2010.ap09490
Keywords
Design sensitivity; Effect ratio; Instrumental variable; Nonbipartite matching; Observational study; Optimal matching; Sensitivity analysis
Categories
Funding
- U.S. National Science Foundation [SES-0849370]
- Agency for Healthcare Research and Quality
- Direct For Social, Behav & Economic Scie
- Divn Of Social and Economic Sciences [0849370] Funding Source: National Science Foundation
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An instrument is a random nudge toward acceptance of a treatment that affects outcomes only to the extent that it affects acceptance of the treatment. Nonetheless, in settings in which treatment assignment is mostly deliberate and not random, there may exist some essentially random nudges to accept treatment, so that use of an instrument might extract bits of random treatment assignment from a setting that is otherwise quite biased in its treatment assignments. An instrument is weak if the random nudges barely influence treatment assignment or strong if the nudges are often decisive in influencing treatment assignment. Although ideally an ostensibly random instrument is perfectly random and not biased, it is not possible to be certain of this; thus a typical concern is that even the instrument might be biased to some degree. It is known from theoretical arguments that weak instruments are invariably sensitive to extremely small biases; for this reason, strong instruments are preferred. The strength of an instrument is often taken as a given. It is not. In an evaluation of effects of perinatal care on the mortality of premature infants, we show that it is possible to build a stronger instrument, we show how to do it, and we show that success in this task is critically important. We also develop methods of permutation inference for effect ratios, a key component in an instrumental variable analysis.
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