Causal Inference, Instrumental Variables, Stats 361, Stanford, Data Science.
This method is exactly IV Regression. Yamada (2020) visualized the relationship between the variables by the following DAG. Figure 4. The direct acyclic graph (DAG) of the wage equation (captured at 11:05, Yamada, 2020) By comparing the nodes and edges in the DAG and three conditions by Wager