How to think about instrumental variables when you get confused

The trick is to think of (T,y) as a joint outcome and to think of the effect of z on each. For example, an increase of 1 in z is associated with an increase of ...

Three Ways of Thinking About Instrumental Variables

Now suppose that Z is an instrumental variable: something that is uncorrelated with U (exogenous) but correlated with X (relevant). For example, ...

Instrumental Variables for Omitted Variables : r/econometrics - Reddit

Yeah, this question is confusing. It sounds like you might be mixing up proxy and instrument variables. And why does your question explicitly ...

Instrumental Explanations of Instrumental Variables

I have recently discussed Marc Bellemare's 'Metrics Monday posts, but he's written many many more applied econometrics posts that are really ...

An intuitive explanation of the instrumental variable - Cross Validated

You cannot condition on it because it is unmeasured. So you find an instrumental variable Z that causally affects only X ...

Instrumental Variable validity : r/datascience - Reddit

Instrumental Variable validity · 1- IV should be independent of u (low correlation) · 2- IV and outcome should be dependent (high correlation) · 3- ...

Instrumenting on dummies and categorical - Statalist

Giorgio, is var1 an independent variable or an instrumental variable? If it's an independent variable, then you are not able to and don't need ...

Some confusions about instrumental variable (econometrics)

Validity: an instrumental variable and error term are not correlated and it implies that the instrumental variable does not directly lead to ...

A Good Instrument Is Hard To Find - Broadstreet Blog

TLDR; If our independent variable of interest (our supposed treatment) is endogenous, then we try to find a third variable that is “as-if random ...

Why visualizing instrumental variables made me less excited about it

... get confused. It makes students think that X-hat is just like X ... [If you disagree, send me a clear visualization of your 2SLS results and all ...

Request for advice on implementing instrumental variable (2SLS ...

But then my dependent and endogenous variables would have to be censored, not truncated. Now that you suggest ivtobit, and having failed to find ...

Instrumental variables for 'confounder control' - Jeremy Labrecque

In most IV analyses, the majority of the confounders aren't available so how can they be controlled for? IV analysis is a different type of ...

Why Can't We Just Make Up Instrumental Variables?

Every new argument that an instrumental variable is valid in one research context undermines the validity of that instrumental variable in other ...

7 Instrumental Variables - Causal Inference The Mixtape

If they did go together, it would likely mean that the exclusion restriction was violated. But if they don't, then the person is confused, and that is at ...

How to simulate an instrumental variables problem?

what my various assumptions say about the distribution of the principal strata and the parameters for the potential outcome models. Then I ...

Keeping sets of instrumental variable assumptions straight

There is more than one way they can be stated accurately. But sometimes it's clear there has been some confusion. Below is a causal graph I ...

Testing Instrumental Variables Assumptions (The Effect, Videos on ...

... go right or the thing will fall apart! Are there any ways we can use the data to check whether these assumptions are likely to be true?

Instrumental Variables Estimation - The Decision Lab

Instrumental Variables Estimation is a way to support that process, but it's necessary to first understand why they can often be confused in the first place.

Unpacking the Instrumental Variables Approach

The IV approach can only identify the “local” effect of D on Y for units whose treatment status can be manipulated by the instrument, and not ...

Instrumental variables: The power of wishful thinking vs the ...

An instrumental variable (IV) as “an unconfounded proxy for a study exposure that can be used to estimate a causal effect in the presence of unmeasured ...