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$\begingroup$ Thank you for this answer. Just a quick follow up on the logic part- this still is exactly the logic with a continuous instrument, correct? it is just that thinking of it in terms of a binary one makes it clearer/more intuitive? $\endgroup$

Steve
– Steve

2021-03-11 21:34:00 +00:00
Commented Mar 11, 2021 at 21:34
1

$\begingroup$ With a continuous instrument, you are still estimating the effect of "treatment" on the "outcome" for those units whose "treatment" can be changed by the "instrument." However, the interpretation is no longer as simple/intuitive as in the binary instrument case. $\endgroup$

Peter
– Peter

2021-03-12 20:11:45 +00:00
Commented Mar 12, 2021 at 20:11

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