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 using only variation in the treatment that isn't correlated with unobservables that 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 controlling for unobservables that may crucially affect the outcome.
D. None of the answers is correct.


Answer: A

Biology & Microbiology

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