IV

Resources

Textbooks:

• 7 Instrumental Variables | The Mixtape

Coding

• 12 Instrumental Variables Regression | Introduction to Econometrics with R

References

Angrist, Joshua D. 1990. “Lifetime Earnings and the Vietnam Era Draft Lottery: Evidence from Social Security Administrative Records.” The American Economic Review 80(3): 313–36. (Link here)

Interpretation: LATE

References

Imbens, Guido W., and Joshua D. Angrist. 1994. “Identification and Estimation of Local Average Treatment Effects.” Econometrica 62(2): 467–75. doi:10.2307/2951620.

Mogstad, Magne, and Alexander Torgovitsky. 2018. “Identification and Extrapolation of Causal Effects with Instrumental Variables.” Annual Review of Economics 10(1): 577–613. doi:10.1146/annurev-economics-101617-041813.

IV vs. OLS

Differences:

• Endogeneity
• Measurement error
• Local average treatment effect

IV designs

Judge IV

TBD

Bartik IV

TBD