More on Instrumental Variables

As the use of instrumental variables has become almost common in many literatures, especially economics and, increasingly, political science, it would assist many to get a better feel for the work they can perform (when used correctly and prudently). In this spirit, a recent paper in the American Journal of Political Science, Instrumental Variables Estimation in Political Science: A Readers' Guide, by Allison Sovey (Yale) and Donald Greeen (Yale), provides one helpful (and generally accessible) discussion. More specifically, the paper discusses "two noteworthy applications of instrumental variables regression, calling attention to the statistical assumptions that each invokes. The concluding section proposes reporting standards and provides a checklist for readers to consider as they evaluate applications of this method."