Concept

Instrumental Variable

In a causal diagram, an instrumental variable is a variable that satisfies the following properties:

  • The instrumental variable has a causal effect on the treatment variable.
  • The instrumental variable is not associated with unmeasured confounder(s).
  • The instrumental variable affects the outcome only via the treatment variable; i.e., there is no direct effect of the instrumental variable on the outcome variable.
  • Assumptions: linearity or monotonicity
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Updated 2020-06-25

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Data Science