📊 06 - Instrumental Variables

Table of Contents

Today’s session

  • Review how to manually extract the LATE through the wald estimator
  • Learn how to perform Two-stage Least Squares regression (2SLS) with ivreg() from the AER package
  • Illustrate the mechanics of Two-stage Least Squares regression (2SLS) with lm()

Download slides - PDF


Further references

For R and RMarkdown
      Reminder of the basics: https://tinyurl.com/vkebh2f
      RMarkdown: The definitive guide https://tinyurl.com/y4tyfqmg
      Data wrangling with dplyr: https://tinyurl.com/vyrv596
      dplyr video tutorial: https://www.youtube.com/watch?v=jWjqLW-u3hc

To explore more about AER::ivreg():

       Instrumental variables regression: https://rpubs.com/wsundstrom/t_ivreg

For learning more about DAGs and ggdag:

      An Introduction to DAGs: https://ggdag.netlify.com/articles/intro-to-dags.html
      Introduction to ggdag: https://ggdag.netlify.com/articles/intro-to-ggdag.html
      Bias structures: https://ggdag.netlify.com/articles/bias-structures.html

Helpful cheatsheets

      Data visualization with ggplot: https://rstudio.com/wp-content/uploads/2015/03/ggplot2-cheatsheet.pdf
      Data wrangling with dplyr and tidyr: https://tinyurl.com/s6zxfqh
      RMarkdown cheatsheet: https://tinyurl.com/uqoelrx


Meet your instructors

Lisa Oswald & Sebastian Ramirez Ruiz