Instrumental variables (IV) or instrumental analysis is widely used economics; however, stats people like me are not taught too much about this topic in my school days. These days I am enrolled in a project which may probably need this technique, when I feel I need to learn a bit about this widely used method.
Although IV is widely used in economics, it is not quite emphasized in other fields like Epidemiology or health related research. Only few publications can be found using IV method. So it seems important for people working in Epidemiology or health related area to know more about IV and to apply IV method to their work, which leads my motivation to learn more about IV and try to do something.
Besides a book, Econometric Theory and Methods by Russell Davidson and James G. MacKinnon, recommended by Sky, I found another book called Microeconometrics – Methods and Applications by A. Colin Cameron and Pravin K. Trivedi also very clear and not hard to follow, at least to me, a nice book to start with.
