Instrumental Variables, Endogeneity, Regression, Linear Regression, Python.
attended an Ivy League school does not seem to be directly correlated with factors such as the person’s ability and motivation, thereby satisfying the exogeneity condition. Thus we have: Cov(Legacy, Attended_Ivy_League) != 0 Cov(Legacy, ϵ) = 0 Thus, we appoint Legacy as the instrument for