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Possibilistic Instrumental Variable Regression

Gregor Steiner, Jeremie Houssineau, Mark F. J. Steel

arXiv 20 Nov 2025 · Statistics — Methodology

arXiv:2511.16029 · PDF · Extracted main text

Abstract

Instrumental variable regression is a common approach for causal inference in the presence of unobserved confounding. However, identifying valid instruments is often difficult in practice. In this paper, we propose a novel method based on possibility theory that performs posterior inference on the treatment effect, conditional on a user-specified set of potential violations of the exogeneity assumption. Our method can provide informative results even when only a single, potentially invalid, instrument is available, offering a natural and principled framework for sensitivity analysis. Simulation experiments and a real-data application indicate strong performance of the proposed approach.

Citation extraction

28
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52
in-text mentions
28
distinct cited
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5,541
main-text words

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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
1Chernozhukov, V., Hansen, C. B., Kong, L., and Wang, W (2025) Plausible GMM: A Quasi-Bayesian Approach0.9619389%
2Penn, J., Gunderson, L. M., Bravo-Hermsdorff, G., Silva, R., and Wat… (2025) BudgetIV: Optimal Partial Identification of Causal Effects with Mostly Invalid Instruments0.8434475%
3Martin, R (2025) Possibilistic inferential models: a review0.84333100%
4Kang, H., Zhang, A., Cai, T. T., and Small, D. S (2016) Instrumental Variables Estimation With Some Invalid Instruments and its Application to Mendelian Randomization0.73732100%
5Card, D (1995) Using Geographic Variation in College Proximity to Estimate the Return to Schooling0.64441100%
6Martin, R. and Liu, C (2013) Inferential Models: A Framework for Prior-Free Posterior Probabilistic Inference0.64422100%
7Steiner, G. and Steel, M (2025) Bayesian Model Averaging in Causal Instrumental Variable Models self0.64422100%
8Windmeijer, F., Liang, X., Hartwig, F. P., and Bowden, J (2021) The Confidence Interval Method for Selecting Valid Instrumental Variables0.64422100%
9Acemoglu, D., Johnson, S., and Robinson, J. A (2001) The Colonial Origins of Comparative Development: An Empirical Investigation0.51121100%
10Chib, S., Shin, M., and Simoni, A (2018) Bayesian Estimation and Comparison of Moment Condition Models0.51121100%

Showing the top 10 of 28 scored citations.