Journal article
2SLS versus 2SRI: Appropriate methods for rare outcomes and/or rare exposures
Health economics, Vol.27(6), pp.937-955
06/01/2018
DOI: 10.1002/hec.3647
PMCID: PMC6594361
PMID: 29577493
Abstract
This study used Monte Carlo simulations to examine the ability of the two-stage least squares (2SLS) estimator and two-stage residual inclusion (2SRI) estimators with varying forms of residuals to estimate the local average and population average treatment effect parameters in models with binary outcome, endogenous binary treatment, and single binary instrument. The rarity of the outcome and the treatment was varied across simulation scenarios. Results showed that 2SLS generated consistent estimates of the local average treatment effects (LATE) and biased estimates of the average treatment effects (ATE) across all scenarios. 2SRI approaches, in general, produced biased estimates of both LATE and ATE under all scenarios. 2SRI using generalized residuals minimized the bias in ATE estimates. Use of 2SLS and 2SRI is illustrated in an empirical application estimating the effects of long-term care insurance on a variety of binary health care utilization outcomes among the near-elderly using the Health and Retirement Study.
Details
- Title: Subtitle
- 2SLS versus 2SRI: Appropriate methods for rare outcomes and/or rare exposures
- Creators
- Anirban Basu - University of WashingtonNorma B. Coe - University of PennsylvaniaCole G. Chapman - Department of Health Services
- Resource Type
- Journal article
- Publication Details
- Health economics, Vol.27(6), pp.937-955
- DOI
- 10.1002/hec.3647
- PMID
- 29577493
- PMCID
- PMC6594361
- NLM abbreviation
- Health Econ
- ISSN
- 1057-9230
- eISSN
- 1099-1050
- Publisher
- Wiley
- Number of pages
- 19
- Grant note
- NIH 1R01NR13583 / National Institute of Nursing Research; United States Department of Health & Human Services; National Institutes of Health (NIH) - USA; NIH National Institute of Nursing Research (NINR) R01CA155329; RC4CA155809 / NIH research; United States Department of Health & Human Services; National Institutes of Health (NIH) - USA
- Language
- English
- Date published
- 06/01/2018
- Academic Unit
- Pharmacy Practice and Science
- Record Identifier
- 9984366015402771
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