Using IV When There is Measurement Error
You're doing some research and plan on using an instrumental variables strategy to help with any noncompliance. But your instrument was hard to measure perfectly, so you think its values have some measurement error. Two of the following statements are valid for an IV analysis, but which one would violate the assumptions of IV analysis and make our results invalid?
This exercise is part of the course
Causal Inference with R - Instrumental Variables & RDD
Hands-on interactive exercise
Turn theory into action with one of our interactive exercises
Start Exercise