Instrumental variables

Synonyms:

Experimental instrumental variables

This method is used to estimate the causal effect of variables on an intervention.

The instrumental variables method (IV) is described by Duncan Chapman on the Urban Institute’s website as “one of the more compelling quasi-experimental options of estimating impacts, largely because the assumptions needed to justify the IV option are often more plausible than those needed to justify other options, such as regression”

This method involves identifying instrumental variables; variables that impact outcomes by affecting a key independent variable. The method can also be used to control for measurement errors.

Resources

Instrumental variables methods
This guide from The Urban Institute provides an overview of how instrumental variable methods work along with links to two research examples at the end of the document.
Contents What is it used to measure? How does it work? Research Examples
What “extras” do we get with extracurriculars? Technical research considerations
This research paper uses Instrumental Variable methods to analyse whether "participation in out-of-school extracurricular activities improve academic achievement or behavior for elementary school children?
High school employment: Meaningful connections for at-risk youth
This research paper from the Urban Institute uses instrumental variable methods in order to estimate the effect that employment in high school will have on the long term education outcomes of students.

Sources

Chaplin, D. (2012). Instrumental variables options. Retrieved from http://www.urban.org/toolkit/data-methods/instrumental.cfm (archived link)

Expand to view all resources related to 'Instrumental variables'

Resource
- High school employment: Meaningful connections for at-risk youth
- What “extras” do we get with extracurriculars? Technical research considerations