Instrumental variables (IVs) are variables that affect the value of another variable, called the treatment variable, but do not have a direct effect on the outcome variable. For example, suppose you ...

Monetary policy shocks are unexpected changes in the interest rate or the money supply that affect the economy. They can have various impacts on inflation, which is the general increase in the prices ...

 One of the most frequently encountered issues in econometrics is endogeneity. Consider the ...

One of the most frequently encountered issues in econometrics is endogeneity. Consider the simple Ordinary Least Squares (OLS) regression setting in which we model wages as a function of years of ...