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External Validity in an Instrumental Variable Setting.

Alexander Kwon1, Kyungtae Lee1

  • 1Ph.D. Program in Economics, Graduate Center, CUNY, New York, NY, USA.

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|May 15, 2025
PubMed
Summary

Instrumental variable estimation

Area of Science:

  • Econometrics
  • Public Health
  • Development Economics

Background:

  • External validity of instrumental variable (IV) estimation is crucial for generalizing research findings.
  • Assessing external validity requires specific assumptions, such as conditional external unconfoundedness among compliers.
  • The impact of solid-fuel usage on women's cooking time is a relevant case study for examining IV external validity.

Purpose of the Study:

  • To evaluate the external validity of instrumental variable (IV) estimation in a real-world context.
  • To test the assumption of conditional external unconfoundedness among compliers in a study on solid-fuel usage.
  • To assess the generalizability of findings across different countries.

Main Methods:

  • Applied instrumental variable (IV) estimation techniques.
Keywords:
developing countriesexternal validitygeneralizationinstrumental variablepredictionsolid fuel impacttime usage

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  • Tested the conditional external unconfoundedness assumption.
  • Conducted a comparative case study across six countries examining the impact of solid-fuel usage on women's cooking time.

    • Main Results:

    • No statistical evidence of violated assumptions for external validity was found in Ethiopia, Honduras, Kenya, and Zambia.
    • Low external validity was detected in Cambodia and Nepal.
    • Suggestive evidence indicates violated assumptions for external validity in Cambodia and Nepal.

    Conclusions:

    • The external validity of instrumental variable (IV) estimation varies significantly across different country contexts.
    • Conditional external unconfoundedness assumption holds in four of the six studied countries.
    • Findings highlight the importance of country-specific validation for IV studies.