Does the interpretation on the estimated coefficient on the treatment change if you use a proxy variable to control for a confounding factor?
A. Yes, the coefficient on the treatment is biased.
B. Yes, the coefficient on the treatment suffers from the simultaneity bias.
C. No, but instead of getting causal estimate you're only estimating partial correlations.
D. No, the estimated coefficient is a consistent estimate of the causal effect.
Answer: D
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