Solution

ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2021/iii/paper-207/2/c/solution

The core instrumental variable assumptions are:
For a local average effect one additionally uses instrumental-variable monotonicity. Because the valid instrument supplies variation in education independent of the confounders and has no direct route to the outcome, the instrument-outcome association can be attributed to the education changed by the instrument without measuring every confounder.

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