In a model with a potential causal variable c, an outcome variable d and an instrument e, for...

Question:

In a model with a potential causal variable c, an outcome variable d and an instrument e, for instrumental variables estimation to return the true causal effect of c on d , the instrument e must

a) be a determinant of d

b) be uncorrelated with c

c) only affect d through its effect on c

d) be strongly correlated with any unobservable factors

Variable:

Variable refers to the changes or something that is not static in nature. It keeps on changing from time to time or with the increase or decrease of other important factors. For example, wages are variable and rent is fixed.

Answer and Explanation:

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What are Variables in Science? - Definition, Types & Examples

from High School Biology: Tutoring Solution

Chapter 1 / Lesson 9
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