Introduction to Instrumental Variables, Part One Practice Questions

1. The video discusses an instrumental variables analysis of the effects of charter school attendance on student math scores. The Instrumental Variable (IV) used here is: *

a. Student math scores.

b. Charter school attendance.

c. Charter school offers allocated by lottery.

d. The change in likelihood of attending a charter school if selected by lottery.

2. The first stage in the IV analysis of charter attendance effects is: *

a. The effect of charter school attendance on math scores.

b. The effect of math scores on charter school attendance.

c. The effect of charter school offers on math scores.

d. The effect of charter school offers on charter attendance.

3. The reduced form in the IV analysis of charter attendance effects is: *

a. The effect of charter school attendance on math scores.

b. The effect of math scores on charter school attendance.

c. The effect of charter school offers on math scores.

d. The effect of charter offers on charter attendance.

4. Suppose that instead of randomly offering seats, we were to randomly assign the opportunity to watch a video advertisement encouraging charter attendance in middle school to a sample of traditional public elementary school students and their families. Assuming IV assumptions hold, which of the following best describes how we might use this scenario to estimate the effects of charter attendance on math scores? *

a. Use the estimate of the effect of viewing the video on charter attendance and divide this by the estimate of the effect of charter attendance on math scores.

b. Use the estimate of the effect of viewing the video on math scores and divide this by the estimate of the effect of viewing the video on charter attendance.

c. Use the estimate of the effect of viewing the video on math scores and divide this by the estimate of the effect of charter attendance on math scores.

d. Use the estimate of the effect of charter attendance on math scores and divide this by the estimate of the effect of watching the video on math scores.

5. Suppose that instead of using lotteries, the city of Lynn were to allocate charter seats to the families with the lowest incomes. In this case, offers are unlikely to be a good instrument for charter attendance because *

a. The resulting instrument is correlated with family characteristics, violating the independence assumption.

b. Not all students will take up their offer.

c. Many students can’t afford charter schools.

d. The reduced form is the difference in math grades of students who received an offer.

Use the following scenario to answer the 3 questions below.

Consider a randomized clinical trial that offers a randomly selected treatment group the opportunity to take a Covid-19 vaccine. The analysts are interested in measuring vaccine effectiveness. Some of those offered are uninterested in receiving the vaccine. Those who accept the offer of the vaccination are not randomly chosen; this is a personal decision they’re free to make.

6. In an IV analysis of the data from this trial, the first stage is …. *

a. The effect of being offered the vaccine on the vaccine’s effectiveness.

b. The effect of being offered the vaccine on receiving the vaccine.

c. The effect of receiving the vaccine on the vaccine’s effectiveness (or not contracting COVID19).

d. The effect of vaccine effectiveness on receiving the vaccine.

7. In an IV analysis of this trial, the reduced form is … *

a. The effect of being offered the vaccine on the vaccine’s effectiveness.

b. The effect of being offered the vaccine on receiving the vaccine.

c. The effect of receiving the vaccine on the vaccine’s effectiveness.

d. The effect of vaccine effectiveness on receiving the vaccine.

8. An IV analysis of this trial, the effect of taking the vaccine on Covid infection rates can be computed as *

a. The effect of being offered the vaccine on receiving the vaccine/The effect of being offered the vaccine on the vaccine’s effectiveness.

b. The effect of being offered the vaccine on the vaccine’s effectiveness/the effect of receiving the vaccine on the vaccine’s effectiveness.

c. The effect of being offered the vaccine on the vaccine’s effectiveness/the effect of being offered the vaccine on receiving the vaccine.

d. The effect of receiving the vaccine on the vaccine’s effectiveness/The effect of being offered the vaccine on the vaccine’s effectiveness.

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Practice Questions

Introduction to Instrumental Variables, Part One Practice Questions

Introduction

Think Like a Master

The Furious Five

Bonus: Q&A with Master Joshway

Bonus: 2021 Nobel Prize in Economics

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