I could not cull this down to fit a blog post, so please see the pdf below documenting my use of instrumental variables with Project TALENT data. All analysis was done in STATA (IV regression uses the ivregress command). Instrumental Variables Example
Instrumental variables are powerful tools used (most often) by economists to infer causality in the absence of an experiment. Their use is worth the consideration of psychologists hoping to do the same thing. Instrumental variables are appropriate for use when a covariate (your independent variable) is thought to be correlated with the...
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