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Assessing Sensitivity to IV Exclusion and Exogeneity without First Stage Monotonicity

Paul Diegert, Matthew A. Masten, Alexandre Poirier

arXiv 8 Apr 2026 · Econometrics

arXiv:2604.07604 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Exclusion and exogeneity are core assumptions in instrumental variable (IV) analyses, but their empirical validity is often debated. This paper develops new sensitivity analyses for these assumptions. Our results accommodate arbitrary heterogeneity in treatment effects and do not impose any monotonicity requirements on the first stage. Specifically, we derive identified sets for the marginal distributions of potential outcomes and their functionals, like average treatment effects, under a broad class of nonparametric relaxations of the exclusion and exogeneity assumptions. These identified sets are characterized as solutions to linear programs and have desirable theoretical properties. We explain how to estimate these solutions using computationally tractable methods even when the linear program is infinite-dimensional. We illustrate these methods with an empirical application to peer effects in movie viewership, using weather as a potentially imperfect instrument.

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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
1Gilchrist, D. S. and E. G. Sands (2016) Something to Talk About: Social Spillovers in Movie Consumption0.87482100%
2Manski, C. F (1990) Nonparametric bounds on treatment effects0.87462100%
3Balke, A. and J. Pearl (1997) Bounds on treatment effects from studies with imperfect compliance0.87452100%
4Kitagawa, T (2021) The identification region of the potential outcome distributions under instrument independence0.81142100%
5Kline, P. and A. Santos (2013) Sensitivity to missing data assumptions: Theory and an evaluation of the US wage structure0.64422100%
6Manski, C. F (1983) Closest empirical distribution estimation0.64422100%
7Masten, M. A. and A. Poirier (2018) Identification of treatment effects under conditional partial independence self0.64422100%
8Masten, M. A. and A. Poirier (2021) Salvaging falsified instrumental variable models self0.64422100%
9Mellon, J (2025) Rain, Rain, Go Away: 194 Potential Exclusion-Restriction Violations for Studies Using Weather as an Instrumental Variable0.64422100%
10Pearl, J (1995) On the testability of causal models with latent and instrumental variables, in0.64422100%

Showing the top 10 of 50 scored citations.