Local instrumental variables (LIV) vs. two-stage least squares (2SLS)

An interesting recent paper by Moler-Zapata, Grieve, Basu, and O’Neill (2023) compares local instrumental variables (LIV) with two-stage least squares (2SLS) to IV. Local instrumental variable (LIV) approaches use continuous/multi-valued instrumental variables (IV) to generate consistent estimates of average treatment effects (ATEs) and Conditional Average Treatment Effects (CATEs). There is little evidence on how LIV…

Do for-profit hospitals reduce safety net services?

Social safety net services are necessary, but often unprofitable for hospitals. Is the expansion of HMOs and for-profit hospitals jeopardizing these safety net servies? This is the question researcher Yu-Chu Shen investigates. To test this hypothesis, Shen examines how changes in the market share of HMOs and for-profit HMOs affects probability of shutting down following…