Estimating Instrumental Variables (The Effect, Videos on Causality, Ep 59)

The Effect is a book about research design and causal inference. How can we use data to learn about the world? How can we answer questions about whether X causes Y even if we can't run a randomized experiment? The book covers these things and plenty more. These videos are meant to accompany the book, although they can also be viewed on their own.

This video relates to material found in Chapter 19 of the book.

So we've got the idea behind instrumental variables down, and hopefully our validity assumption holds! So how can we actually estimate an effect? This video covers two methods: two stage least squares and the generalized method of moments.