EconBase
← All papers

On the Use of Instrumental Variables in Mediation Analysis

Bora Kim

arXiv 30 Jan 2022 · Econometrics

arXiv:2201.12752 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Empirical researchers are often interested in not only whether a treatment affects an outcome of interest, but also how the treatment effect arises. Causal mediation analysis provides a formal framework to identify causal mechanisms through which a treatment affects an outcome. The most popular identification strategy relies on so-called sequential ignorability (SI) assumption which requires that there is no unobserved confounder that lies in the causal paths between the treatment and the outcome. Despite its popularity, such assumption is deemed to be too strong in many settings as it excludes the existence of unobserved confounders. This limitation has inspired recent literature to consider an alternative identification strategy based on an instrumental variable (IV). This paper discusses the identification of causal mediation effects in a setting with a binary treatment and a binary instrumental variable that is both assumed to be random. We show that while IV methods allow for the possible existence of unobserved confounders, additional monotonicity assumptions are required unless the strong constant effect is assumed. Furthermore, even when such monotonicity assumptions are satisfied, IV estimands are not necessarily equivalent to target parameters.

Citation extraction

13
references
21
in-text mentions
13
distinct cited
0
self-citations
5,410
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Kosuke Imai, Luke Keele, and Teppei Yamamoto (2010) Identification, inference and sensitivity analysis for causal mediation effects0.73732100%
2Guido W. Imbens and Joshua D. Angrist (1994) Identification and estimation of local average treatment effects0.64441100%
3Judea Pearl (2001) Direct and indirect effects0.58531100%
4Joshua D. Angrist and Guido W. Imbens (1995) Two-stage least squares estimation of average causal effects in models with variable treatment intensity0.51121100%
5Stacey H. Chen, Yen-Chien Chen, and Jin-Tan Liu (2019) The impact of family composition on educational achievement0.40511100%
6Christian Dippel, Gold Robert, Heblich Stephan, and Rodrigo Pinto (2020) Mediation analysis in iv settings with a single instrument0.40511100%
7Christian Dippel, Gold Robert, Heblich Stephan, and Pinto Rodrigo (2021) The effect of trade on workers and voters0.40511100%
8James Heckman, Rodrigo Pinto, and Peter Savelyev (2013) Understanding the mechanisms through which an influential early childhood program boosted adult outcomes0.40511100%
9Markus Frölich and Martin Huber (2017) Direct and indirect treatment effects–causal chains and mediation analysis with instrumental variables0.40511100%
10James J. Heckman (2001) Micro data, heterogeneity, and the evaluation of public policy: Nobel lecture0.40511100%

Showing the top 10 of 13 scored citations.