Two-Sample Instrumental Variables under Population Mismatch: A Transportability Framework with Bias Diagnostics

Instrumental variable (IV) methods are widely used in health and social sciences to estimate causal treatment effects among compliers. In certain research settings, the instrument-treatment association (first stage) and the instrument-outcome association (reduced form) are each estimated from a different dataset. Two-Sample Instrumental Variables (TSIV), proposed by Angrist and Krueger (1992), addresses this by combining first-stage and reduced-form estimates from separate data sources into a single causal effect estimate. However, TSIV identification requires that instrument compliance behavior be consistent across the two samples, a condition that is rarely verified in practice. We show ma