Causal Inference, Instrumental Variables, Stats 361, Stanford, Data Science.
strictness in business, we should decide if we investigate these possibilities. Adding Z, (9.2) is modified as: The important is ε_i⊥⊥Z_i, that means the covariance of ε_i and Z_i is 0, which leads to: and move the member on the right side to the left, we get: The way to calculate τ using the