I review recent work in the statistics literature on instrumental variables methods from an econometrics perspective. I discuss some of the older, economic, applications including supply and demand models and relate them to the recent applications in settings of randomized experiments with noncompliance. I discuss the assumptions underlying instrumental variables methods and in what settings these may be plausible. By providing context to the current applications, a better understanding of the applicability of these methods may arise.
Guido W. Imbens. "Instrumental Variables: An Econometrician’s Perspective." Statist. Sci. 29 (3) 323 - 358, August 2014. https://doi.org/10.1214/14-STS480