In Words, Why Can Utilizing an Instrumental Variable Be an Effective

question 8

Multiple Choice

In words, why can utilizing an instrumental variable be an effective means toward identifying the causal effect of a treatment on an outcome?

• A) It allows you to identify the causal effect of the treatment by controlling for unobservables that may crucially affect the outcome.
• B) It allows you to identify the causal effect of the treatment by using only variation in the treatment that is correlated with unobservables that affect the outcome.
• C) It allows you to identify the causal effect of the treatment by using only variation in the treatment that isn't correlated with unobservables that affect the outcome.
• D) None of the answers is correct.

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Definitions:

Criminal Justice

The system of practices and institutions of governments directed at upholding social control, deterring and mitigating crime, and sanctioning violators with criminal penalties and rehabilitation efforts.

Punitiveness

The disposition or tendency toward imposing or endorsing punishment or harsh penalties.

Moral Panics

Widespread feelings of fear and concern among the general public, typically irrational, about an issue that appears to threaten the social order.

Social Movements

are collective, organized efforts aimed at promoting or resisting change in society, typically driven by a shared identity, concern, or goal among participants.