The use of genetic markers as instrumental variables (IV) is receiving increasing attention from economists, statisticians, epidemiologists and social scientists. Although IV is commonly used in economics, the appropriate conditions for the use of genetic variants as instruments have not been well defined. The increasing availability of biomedical data, however, makes understanding of these conditions crucial to the successful use of genotypes as instruments. We combine the econometric IV literature with thatfrom genetic epidemiology, and discuss the biological conditions and IV assumptions within the statistical potential outcomes framework. We review this in the context of two illustrative applications.

Additional Metadata
Keywords ALSPAC, Genetic variants, Instrumental variables, Mendelian randomization, Potential outcomes
JEL Health (jel I1), Education and Research Institutions (jel I2)
Persistent URL hdl.handle.net/1765/114081
Journal Journal of Health Economics
Citation
von Hinke Kessler Scholder, S.M.L., Davey-Smith, G, Lawlor, D.A, Propper, C, & Windmeijer, F. (2016). Genetic Markers as Instrumental Variables. Journal of Health Economics, 45, 131–148. Retrieved from http://hdl.handle.net/1765/114081