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04 Instrumental Variables in Action.md

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04 Instrumental Variables in Action

4.1 IV and causality

Figure 4-1-1

Completed in Stata, R and Python

Figure 4-1-1 in R

Table 4-1-2

Completed in Stata and R

Born in the 1st or 2nd quarter of year Born in the 3rd or 4th quarter of year Difference
ln(weekly wage) 5.893844 5.905829 0.0119847
Years of education 12.716122 12.821813 0.1056907
Wald estimate NA NA 0.1133937
Wald std error NA NA 0.0215257
OLS estimate NA NA 0.0708510
OLS std error NA NA 0.0003386

Figure 4-6-1

Completed in Stata and R

Figure 4-6-1 in R