- Subject index
‘The editors of the new SAGE Handbook of Regression Analysis and Causal Inference have assembled a wide-ranging, high-quality, and timely collection of articles on topics of central importance to quantitative social research, many written by leaders in the field. Everyone engaged in statistical analysis of social-science data will find something of interest in this book.’
- John Fox, Professor, Department of Sociology, McMaster University
‘The authors do a great job in explaining the various statistical methods in a clear and simple way - focussing on fundamental understanding, interpretation of results, and practical application - yet being precise in their exposition.’
- Ben Jann, Executive Director, Institute of Sociology, University of Bern
‘Best and Wolf have put together a powerful collection, especially valuable in its separate discussions of uses for ...
Chapter 13: Instrumental Variables Regression
Instrumental Variables Regression
Because of the presence of unobserved variables, social scientists are often unable to use standard methods such as stratification, matching, or regression to estimate the causal effect of a treatment D on an outcome Y. Instrumental variables (IV) regression provides one potential solution to this problem. IV regression involves finding an exogenous variable, the instrument Z, that affects Y only through the causal variable D. The researcher identifies the causal effect of D on Y by estimating the portion of variation in the outcome Y associated with the treatment D that is attributable to the exogenous variable Z.
In this chapter we introduce IV regression. Our discussion is based in part on the presentation in chapters 3 ...