TY  - RPRT
        AU  - Wiseman, Nathan
AU  - Sorensen, Todd A.
        TI  - Bounds with Imperfect Instruments: Leveraging the Implicit Assumption of Intransitivity in Correlations
        PY  - 2017/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 10646
        UR  - https://www.iza.org/index.php/publications/dp10646
        AB  - Instrumental variables (IV) is an indispensable tool for establishing causal relationships between variables. Recent work has focused on improving bounds for cases when an ideal instrument does not exist. We leverage a principle, "Intransitivity in Correlations," related to an under-utilized property from the statistics literature. From this principle, it is straightforward to obtain new bounds. We argue that these new theoretical bounds become increasingly useful as instruments become increasingly weak or invalid.
        KW  - instrumental variables
KW  - bounding
KW  - partial identification
KW  - transitivity in correlations
        ER  -