Instrumental Variables: A Strategy for Leveraging Natural Random Assignment

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Instrumental variables is a strategy for leveraging naturally occurring random assignment. Regression discontinuity designs are research designs that attempt to mimic an experiment by using the rules that determine allocation to treatment states. Dokro and Pazik study of elite high schools like Boston Latin School and New York's Diverson school.

Joshua Angrist of the Massachusetts Institute of Technology talks to EconTalk host Russ Roberts about the craft of econometrics--how to use economic thinking and statistical methods to make sense of data and uncover causation. Angrist argues that improvements in research design along with various econometric techniques have improved the credibility of measurement in a complex world. Roberts pushes back and the conversation concludes with a discussion of how to assess the reliability of findings in controversial public policy areas.