Near / Far Matching-A Nonparametric Instrumental Variables Technique for Binary Outcomes 1

Instrumental variables (IV) is a framework for making causal inferences about the effect of a treatment based on an observational study in which there are unmeasured confounding variables. The most common form of IV estimation is two-stage least squares (2SLS), which works well when the outcome of interest is continuous. However, in many policy settings the… CONTINUE READING