Instrumental variables in sociology and the social sciences

Annual Review of Sociology

Volumn 38, Issue , 2012, Pages 37-72

  Bollen, Kenneth A ^a  

^a UNIVERSITY OF NORTH CAROLINA   (United States)

Author keywords

Endogeneity problem; Identification; Latent variables; Limited dependent variables; Potential outcomes; Structural equation models

Indexed keywords

EID: 84864189394     PISSN: 03600572     EISSN: None     Source Type: Book Series    
DOI: 10.1146/annurev-soc-081309-150141     Document Type: Review

References (154)

1. Adkins LC. 2012. Testing parameter significance in instrumental variables probit estimators: Some simulation results. J. Stat. Comput. Simul. In Press
2. Alderson AS. 2004. Explaining the upswing in direct investment: A test of mainstream and heterodox theories of globalization. Soc. Forces 83:81-122 (Pubitemid 39483317)
3. Alon S, Donahoe D, Tienda M. 2001. The effects of early work experience on young women's labor force attachment. Soc. Forces 79:1005-34
4. Angrist JD. 1990. Lifetime earnings and the Vietnam era draft lottery: Evidence from Social Security administrative records. Am. Econ. Rev. 80:313-36
5. Angrist JD, Imbens GW. 1995. Two-stage least squares estimation of average causal effects in models with variable treatment intensity. J. Am. Stat. Assoc. 90:431-42
6. Angrist JD, Imbens GW, Rubin DB. 1996. Identification of causal effects using instrumental variables. J. Am. Stat. Assoc. 91:444-55 (Pubitemid 126412813)
7. Angrist JD, Krueger AB. 1991. Does compulsory school attendance affect schooling and earnings? Q. J. Econ. 106:979-1014
8. Angrist JD, Krueger AB. 2001. Instrumental variables and the search for identification: From supply and demand to natural experiments. J. Econ. Perspect. 15:69-85 (Pubitemid 33594775)
9. Angrist JD, Pischke J-S. 2009. Mostly Harmless Econometrics: An Empiricist's Companion. Princeton, NJ: Princeton Univ. Press
10. Anselin L. 1988. Spatial Econometrics: Methods and Models. Dordrecht, Neth.: Kluwer Acad.
11. ArellanoM, Bond S. 1991. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev. Econ. Stud. 58:277-97
12. AxinnWG, Barber JS. 2001. Mass education and fertility transition. Am. Sociol. Rev. 66:481-505 (Pubitemid 32804556)
13. Baller RD, Richardson KK. 2002. Social integration, imitation, and the geographic patterning of suicide. Am. Sociol. Rev. 67:873-88 (Pubitemid 36290513)
14. Bandelj N. 2009. The global economy as instituted process: The case of Central and Eastern Europe. Am. Sociol. Rev. 74:128-49
15. Barro RJ, McCleary RM. 2003. Religion and economic growth across countries. Am. Sociol. Rev. 68:760-81 (Pubitemid 37538353)
16. Basmann RL. 1957. A generalized classical method of linear estimation of coefficients in a structural equation. Econometrica 25:77-83
17. Basmann RL. 1960. On finite sample distributions of generalized classical linear identifiability test statistics. J. Am. Stat. Assoc. 55:650-59
18. Blau PM, Duncan OD. 1967. The American Occupational Structure. New York: Wiley
19. Bollen KA. 1989. Structural Equations with Latent Variables. New York:Wiley
20. Bollen KA. 1996. An alternative 2SLS estimator for latent variable models. Psychometrika 61:109-21
21. Bollen KA. 2001. Two-stage least squares and latent variable models: Simultaneous estimation and robustness to misspecifications. In Structural Equation Modeling: Present and Future, a Festschrift in Honor of Karl JÖreskog, ed. R udeck, S du Toit, D Sörbom, pp. 119-38. Lincolnwood, IL: Sci. Softw. Int.
22. Bollen KA, Bauer DJ. 2004. Automating the selection of model-implied instrumental variables. Sociol.Methods Res. 32:425-52 (Pubitemid 38613721)
23. Bollen KA, Biesanz JC. 2002. A note on a two-stage least squares estimator for higher-order factor analyses. Sociol. Methods Res. 30:568-79 (Pubitemid 36714508)
24. Bollen KA, Guilkey DK, Mroz TA. 1995. Binary outcomes and endogenous explanatory variables: Tests and solutions with an application to the demand for contraceptive use in Tunisia. Demography 32:111-31
25. Bollen KA, Kirby JB, Curran PJ, Paxton PM, Chen F. 2007. Latent variable models under misspecification: Two stage least squares (2SLS) and maximum likelihood (ML) estimators. Sociol. Methods Res. 36:46-86
26. Bollen KA, Kolenikov S, Bauldry S. 2011. Generalized method of moments-instrumental variable estimators for latent variable models. Work. Pap. 1-51
27. Bollen KA, Maydeu-Olivares A. 2007. Polychoric instrumental variable (PIV) estimator for structural equations with categorical variables. Psychometrika 72:309-26
28. Bound J, Jaeger DA, Baker RM. 1995. Problems with instrumental variables estimation when the correlation between the instruments and the endogenous explanatory variable is weak. J. Am. Stat. Assoc. 90:443-50
29. Bowden RJ, Turkington DA. 1984. Instrumental Variables. Cambridge, UK: Cambridge Univ. Press
30. BradyD, Seeleib-Kaiser M, Beckfield J. 2005. Economic globalization and the welfare state in affluent democracies, 1975-2001. Am. Sociol. Rev. 70:921-48
31. Brito C. 2010. Instrumental sets. In Heuristics, Probability, and Causality, ed. R Dechter, H Geffner, JY Halpern, pp. 295-308. London: College Publ.
32. Brito C, Pearl J. 2002. A graphical criterion for the identification of causal effects in linear models. Presented at Proc. AAAI Conf., Edmonton, Can.
33. Buchmann C. 2000. Family structure, parental perceptions, and child labor in Kenya: What factors determine who is enrolled in school? Soc. Forces 78:1349-78
34. Burris V. 2004. The academic caste system: Prestige hierarchies in PhD exchange networks. Am. Sociol. Rev. 69:239-64 (Pubitemid 38727985)
35. Burris V. 2005. Interlocking directorates and political cohesion among corporate elites. Am. J. Sociol. 111:249-83 (Pubitemid 41625126)
36. Buse A. 1992. The bias of instrumental variable estimators. Econometrica 60:173-80
37. Cameron AC, Trivedi PK. 2005. Microeconometrics: Methods and Applications. New York: Cambridge Univ. Press
38. Castilla EJ. 2005. Social networks and employee performance in a call center. Am. J. Sociol. 110:1243-83 (Pubitemid 41053729)
39. Chang ML. 2005. With a little help from my friends (and my financial planner). Soc. Forces 83:1469-97
40. Cheng S, Powell B. 2007. Under and beyond constraints: Resource allocation to young children from biracial families. Am. J. Sociol. 112:1044-94
41. Clampet-Lundquist S, MasseyDS. 2008. Neighborhood effects on economic self-sufficiency: A reconsideration of the Moving to Opportunity experiment. Am. J. Sociol. 114:107-43
42. Crow JF. 1978. Wright, Sewall. In International Encyclopedia of the Social Sciences-Biographical Supplement. New York: Macmillan
43. Cunningham D, Phillips BT. 2007. Contexts for mobilization: Spatial settings and Klan presence in North Carolina, 1964-1966. Am. J. Sociol. 113:781-814
44. Didelez V,Meng S, Sheehan NA. 2010. Assumptions of IV methods for observational epidemiology. Stat. Sci. 25:22-40
45. Elman C, O'Rand AM. 2004. The race is to the swift: Socioeconomic origins, adult education, and wage attainment. Am. J. Sociol. 110:123-60 (Pubitemid 39427382)
46. Ferraro KF, Kelley-Moore JA. 2003. Cumulative disadvantage and health: Long-term consequences of obesity. Am. Sociol. Rev. 68:707-29 (Pubitemid 37538351)
47. Fienberg SE. 1971. Randomization and social affairs: The 1970 draft lottery. Science 171:255-61
48. Geary RC. 1949. Determination of linear relations between systematic parts of variables with errors of observation the variances of which are unknown. Econometrica 17:30-58
49. Goldberger AS. 1964. Econometric Theory. New York:Wiley
50. Goldberger AS. 1972. Structural equation methods in the social sciences. Econometrica 40:979-1001
51. Griffin LJ, Bollen KA. 2009. What do these memories do? Civil rights remembrance and racial attitudes. Am. Sociol. Rev. 74:594-614
52. Grootendorst P. 2007. A review of instrumental variables estimation of treatment effects in the applied health sciences. Health Serv. Outcome Res. Methodol. 7:159-79 (Pubitemid 350064633)
53. Guilkey DK, Mroz TA, Taylor L. 1992. Estimation and testing in simultaneous equations models with discrete outcomes using cross section data.Work. Pap., Univ. North Carolina, Chapel Hill
54. Hagan J, Foster H. 2003. S/He's a rebel: Toward a sequential stress theory of delinquency and gendered pathways to disadvantage in emerging adulthood. Soc. Forces 82:53-86 (Pubitemid 37239938)
55. Hägglund G. 1982. Factor analysis by instrumental variables. Psychometrika 47:209-22
56. Hall AR. 2005. Generalized Method of Moments. Oxford: Oxford Univ. Press
57. Hall AR, Rudebusch GD, Wilcox DW. 1996. Judging instrument relevance in instrumental variables estimation. Int. Econ. Rev. 37:283-98
58. Hansen LP. 1982. Large sample properties of generalized method of moments estimators. Econometrica 50:1029-54
59. Hayashi F. 2000. Econometrics. Princeton, NJ: Princeton Univ. Press
60. Holtz-Eakin D, Newey W, Rosen HS. 1988. Estimating vector autoregressions with panel data. Econometrica 56:1371-95
61. Imbens GW, Angrist JD. 1994. Identification and estimation of local average treatment effects. Econometrica 62:467-75
62. Ingram P, Robinson J, BuschML. 2005. The intergovernmental network of world trade: IGO connectedness, governance, and embeddedness. Am. J. Sociol. 111:824-58 (Pubitemid 43310259)
63. Iwata S. 2001. Recentered and rescaled instrumental variable estimation of tobit and probitmodels with errors in variables. Econom. Rev. 20:319-35
64. Jenkins JC, Leicht KT, Wendt H. 2006. Subnational economic development policy in the United States, 1971-1990. Am. J. Sociol. 111:1122-80
65. Johnson LW. 1977. Stochastic parameter regression: An annotated bibliography. Int. Stat. Rev. 45:257-72
66. Johnson LW. 1980. Stochastic parameter regression: An additional annotated bibliography. Int. Stat. Rev. 48:95-102
67. Johnston J. 1984. Econometric Methods. New York: McGraw Hill
68. J öreskog K, SÖrbom D. 1993. LISREL 8: Structural Equation Modeling. Lincolnwood, IL: Sci. Softw. Int.
69. Kelejian HH. 1971. Two-stage least squares and econometric systems linear in parameters but nonlinear in the endogenous variable. J. Am. Stat. Assoc. 66:373-74
70. Kenny DA. 1979. Correlation and Causality. New York:Wiley
71. Kim DH, Schneider B. 2005. Social capital in action: Alignment of parental support in adolescents' transition to postsecondary education. Soc. Forces 84:1181-206 (Pubitemid 43098276)
72. Kirby JB, Bollen KA. 2009. Using instrumental variable tests to evaluate model specification in latent variable structural equation models. Sociol. Methodol. 39:327-55
73. Kirk DS. 2009. A natural experiment on residential change and recidivism: Lessons from Hurricane Katrina. Am. Sociol. Rev. 74:484-505
74. Kiser E, Linton A. 2001. Determinants of the growth of the state: war and taxation in early modern France and England. Soc. Forces 80:411-48 (Pubitemid 33575241)
75. Kocaak OA , Carroll GR. 2008. Growing church organizations in diverse U.S. communities, 1890-1926. Am. J. Sociol. 113:1272-315
76. Lee C-S. 2007. Labor unions and good governance: A cross-national, comparative analysis. Am. Sociol. Rev. 72:585-609 (Pubitemid 47288905)
77. Lee L-F. 1981. Simultaneous equations models with discrete and censored variables. In Structural Analysis of Discrete Data with Econometric Applications, ed. CF Manski, D McFadden, pp. 346-64. Cambridge, MA: MIT Press
78. Lee MR, Shihadeh ES. 2009. The spatial concentration of Southern Whites and argument-based lethal violence. Soc. Forces 87:1671-94
79. Lizardo O. 2006. How cultural tastes shape personal networks. Am. Sociol. Rev. 71:778-807 (Pubitemid 44782406)
80. Loftus J. 2001. America's liberalization in attitudes toward homosexuality, 1973 to 1998. Am. Sociol. Rev. 66:762-82 (Pubitemid 33119363)
81. Long JS. 1997. Regression Models for Categorical and Limited Dependent Variables. Thousand Oaks, CA: Sage
82. Ludwig J, Kling JR, Katz LF, Sanbonmatsu L, Liebman J, et al. 2008. What can we learn about neighborhood effects from the Moving to Opportunity experiment? Am. J. Sociol. 114:144-88
83. Madansky A. 1964. Instrumental variables in factor analysis. Psychometrika 29:105-13
84. Maddala GS. 1983. Limited-Dependent and Qualitative Variables in Econometrics. Cambridge, UK: Cambridge Univ. Press
85. Manski CF. 1988. Analog Estimation Methods in Econometrics. New York: Chapman & Hall
86. Mariano RS. 1982. Analytical small-sample distribution theory in econometrics: The simultaneous equations case. Int. Econ. Rev. 23:503-33
87. Mátyás L. 1999. Generalized Method of Moments Estimation Cambridge, UK: Cambridge Univ. Press
88. Mayer SE. 2001. How did the increase in economic inequality between 1970 and 1990 affect children's educational attainment? Am. J. Sociol. 107:1-32
89. McCarthy B, CaseyT. 2008. Love, sex, and crime: Adolescent romantic relationships and offending. Am. Sociol. Rev. 73:944-69
90. McDonald S, Elder GH Jr. 2006. When does social capital matter? Non-searching for jobs across the life course. Soc. Forces 85:521-49 (Pubitemid 44482846)
91. McManus PA, DiPrete TA. 2001. Losers and winners: The financial consequences of separation and divorce for men. Am. Sociol. Rev. 66:246-68 (Pubitemid 32399710)
92. McVeigh R, Myers DJ, Sikkink D. 2004. Corn, Klansmen, and Coolidge: Structure and framing in social movements. Soc. Forces 83:653-90 (Pubitemid 40224560)
93. Meier AM. 2003. Adolescents' transition to first intercourse, religiosity, and attitudes about sex. Soc. Forces
94. Messner SF, Baumer EP, Rosenfeld R. 2004. Dimensions of social capital and rates of criminal homicide. Am. Sociol. Rev. 69:882-903 (Pubitemid 40382798)
95. Morenoff JD. 2003. Neighborhood mechanisms and the spatial dynamics of birth weight. Am. J. Sociol. 108:976-1017 (Pubitemid 37374314)
96. Morgan MS. 1990. The History of Econometric Ideas. Cambridge, UK: Cambridge Univ. Press
97. Morgan SL, Winship C. 2007. Counterfactuals and Causal Inference: Methods and Principles for Social Research. New York: Cambridge Univ. Press
98. Myers SM. 2000. The impact of religious involvement on migration. Soc. Forces 79:755-83
99. Nagar AL. 1959. The bias and moment matrix of the general k-class estimators of the parameters in simultaneous equations. Econometrica 27:575-95
100. Nelson CR, Startz R. 1990. Some further results on the exact small sample properties of the instrumental variable estimator. Econometrica 58:967-76
101. Noonan MC, CorcoranME, Courant PN. 2005. Pay differences among the highly trained: Cohort differences in the sex gap in lawyers' earnings. Soc. Forces 84:853-72 (Pubitemid 43098263)
102. Offer S, Schneider B. 2007. Children's role in generating social capital. Soc. Forces 85:1125-42
103. Olsson U. 1979. Maximum likelihood estimation of the polychoric correlation coefficient. Psychometrika 44:443-60
104. Olsson U, Drasgow F, Dorans NJ. 1982. The polyserial correlation coefficient. Psychometrika 47:337-47
105. Ono H. 2007. Careers in foreign-owned firms in Japan. Am. Sociol. Rev. 72:267-90 (Pubitemid 46578939)
106. Parrado EA, Flippen CA. 2005. Migration and gender among Mexican women. Am. Sociol. Rev. 70:606-32 (Pubitemid 41555830)
107. Paxton P, Hipp J, Marquart-Pyatt S. 2011. Nonrecursive Models: Endogeneity, Reciprocal Relationships, and Feedback Loops. Thousand Oaks, CA: Sage
108. Paxton P, Kunovich S. 2003. Women's political representation: The importance of ideology. Soc. Forces 82:87-113
109. Pearl J. 2000. The logic of counterfactuals in causal inference. J. Am. Stat. Assoc. 95:428-35
110. Pearl J. 2010. The foundations of causal inference. Sociol. Methodol. 40:75-149
111. Poskitt DS, Skeels CL. 2002. Assessing instrumental variable relevance: An alternative measure and some exact finite sample theory. Work. Pap. 862, Dep. Econ., Monash Univ./Univ. Melbourne
112. Qian Z, Lichter DT, Mellott LM. 2005. Out-of-wedlock childbearing, marital prospects and mate selection. Soc. Forces 84:473-91 (Pubitemid 41498162)
113. Rassen JA, Schneeweiss S, Glynn RJ, Mittleman MA, Brookhart MA. 2009. Instrumental variable analysis for estimation of treatment effects with dichotomous outcomes. Am. J. Epidemiol. 169:273-84
114. Regoeczi WC. 2002. The impact of density: The importance of nonlinearity and selection on flight and fight responses. Soc. Forces 81:505-30 (Pubitemid 36136543)
115. Reiersøl O. 1941. Confluence analysis by means of lag moments and other methods of confluence analysis. Econometrica 9:1-24
116. Reiersøl O. 1945. Confluence analysis by means of instrumental sets of variables. Ark. Math. Astron. Fys. 32:1-119
117. Richardson DH. 1970. The asymptotic unbiasedness of two-stage least squares. Econometrica 38:772
118. Rivers D, Vuong QH. 1988. Limited information estimators and exogeneity tests for simultaneous probit models. J. Econom. 39:347-66
119. Rosenfeld R, Messner SF, Baumer EP. 2001. Social capital and homicide. Soc. Forces 80:283-310 (Pubitemid 33334244)
120. Rosenzweig MR,Wolpin KI. 2000. Natural "natural experiments" in economics. J. Econ. Lit. 38:827-74
121. Ross CE, Mirowsky J, Pribesh S. 2001. Powerlessness and the amplification of threat: Neighborhood disadvantage, disorder, and mistrust. Am. Sociol. Rev. 66:568-91 (Pubitemid 32804557)
122. Rotolo T, McPherson JM. 2001. The system of occupations: modeling occupations in sociodemographic space. Soc. Forces 79:1095-130
123. Rubin DB. 1974. Estimating causal effects of treatments in randomized and nonrandomized studies. J. Educ. Psychol. 66:688-701
124. Rubin DB. 1978. Bayesian inference for causal effects: The role of randomization. Ann. Stat. 6:34-58
125. Rubin H. 1950. Note on random coefficients. In Statistical Inference in Dynamic Economic Models, ed. TC Koopmans, pp. 419-21. New York: Wiley
126. Sanderson MR, Kentor JD. 2009. Globalization, development, and international migration: A cross-national analysis of less-developed countries, 1970-2000. Soc. Forces 88:301-36
127. Sargan JD. 1958. The estimation of economic relationships using instrumental variables. Econometrica 26:393-415
128. Sawa T. 1969. The exact sampling distribution of ordinary least squares and two-stage least squares estimators. J. Am. Stat. Assoc. 64:923-37
129. Schram SF, Soss J, Fording RC, Houser L. 2009. Deciding to discipline: Race, choice, and punishment at the frontlines of welfare reform. Am. Sociol. Rev. 74:398-422
130. Shea J. 1997. Instrument relevance in multivariate linear models: A simple measure. Rev. Econ. Stat. 79:348-52
131. Smith RJ, Blundell RW. 1986. An exogeneity test for a simultaneous equation tobit model with an application to labor supply. Econometrica 54:679-85
132. Sovey AJ, Green DP. 2011. Instrumental variables estimation in political science: A reader's guide. Am. J. Polit. Sci. 55:188-200
133. Splawa-Neyman J. 1923 (1990). On the application of probability theory to agricultural experiments. Essay on principles. Section 9. Stat. Sci. 5:465-80
134. Staiger D, Stock JH. 1997. Instrumental variable regression with weak instruments. Econometrica 65:557-86 (Pubitemid 127466159)
135. Stock JH, Trebbi F. 2003. Who invented instrumental variable regression? J. Econ. Perspect. 17:177-94 (Pubitemid 38883451)
136. Stock JH, Wright JH, Yogo M. 2002. A survey of weak instruments and weak identification in generalized method of moments. J. Bus. Econ. Stat. 20:518-29
137. Stock JH, Yogo M. 2005. Testing for weak instruments in linear IV regression. In Identification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg, ed. DW Andrews, JH Stock, pp. 90-108. New York: Cambridge Univ. Press
138. Swamy PAVB. 1970. Efficient inference in a random coefficient regression model. Econometrica 38:311-23
139. Theil H. 1958. Economic Forecasts and Policy. Amsterdam: North-Holland
140. Theil H. 1971. Principles of Econometrics. New York:Wiley
141. Tomaskovic-Devey D, Skaggs S. 2002. Sex segregation, labor process organization, and gender earnings inequality. Am. J. Sociol. 108:102-28
142. Uggen C, Thompson M. 2003. The socioeconomic determinants of ill-gotten gains: within-person changes in drug use and illegal earnings. Am. J. Sociol. 109:146-85
143. Villarreal A, Yu W-h. 2007. Economic globalization and women's employment: The case of manufacturing in Mexico. Am. Sociol. Rev. 72:365-89 (Pubitemid 46930564)
144. Vuong QH. 1984. Two-stage conditional maximum likelihood estimation of econometric models. Soc. Sci. Work. Pap. No. 538, Calif. Inst. Technol.
145. Wilde J. 2008. A note onGMMestimation of probitmodels with endogenous regressors. Stat. Pap. 49:471-84
146. Winship C, Mare RD. 1992. Models for sample selection bias. Annu. Rev. Sociol. 18:327-50
147. Wooldridge JM. 1995. Score diagnostics for linear models estimated by two stage least squares. In Advances in Econometrics and Quantitative Economics: Essays in Honor of Professor C. R. Rao, ed. GS Maddala, PCB Phillips, TN Srinivasan, pp. 66-87. Oxford: Blackwell
148. Wooldridge JM. 2002. Econometric Analysis of Cross Section and Panel Data. Cambridge, MA: MIT Press
149. Wright PG. 1928. The Tariff on Animal and Vegetable Oils. New York: Macmillan Wright S. 1925. Corn and hog correlations. US Dep. Agric. Bull. 1300:1-60
150. Yatchew A, Griliches Z. 1985. Specification error in probit models. Rev. Econ. Stat. 67:134-39
151. You J-S, Khagram S. 2005. A comparative study of inequality and corruption. Am. Sociol. Rev. 70:136-57 (Pubitemid 40815641)
152. Young C. 2009. Model uncertainty in sociological research: An application to religion and economic growth. Am. Sociol. Rev. 74:380-97
153. Zajac EJ, Westphal JD. 2004. The social construction of market value: institutionalization and learning perspectives on stock market reactions. Am. Sociol. Rev. 69:433-57 (Pubitemid 39103614)
154. Zhang Y, Hannum E, Wang M. 2008. Gender-based employment and income differences in urban China: Considering the contributions of marriage and parenthood. Soc. Forces 86:1529-60