kernel_iv
Estimate causal effects of a continuous treatment on an outcome using an instrumental variable. Returns nonparametric dose-response curves with uniform confidence bands to support causal decisions.
Instructions
Kernel IV regression with uniform confidence bands (Lob et al. 2025). Estimates the structural function h*(d) = E[Y | do(D=d)] via kernel-weighted local averaging under a continuous instrument Z, with wild-bootstrap uniform SEs. Assumptions: Instrument relevance (non-zero first stage); Exclusion restriction: the instrument affects the outcome only through the treatment; Independence/exogeneity of the instrument; for LATE, monotonicity (no defiers). Pre-conditions: An instrument plausibly affecting treatment, an endogenous treatment, and an outcome; A strong first stage (assess instrument strength before interpreting estimates); formula includes the (endog ~ instruments) parenthesised block. Failure modes: Weak first stage -- biased point estimates and unreliable conventional SEs -> Report first-stage F / effective F and use weak-IV-robust inference (Anderson-Rubin); First-stage F < 10 (Stock-Yogo 5% bias) -> Use weak-IV-robust inference (Anderson-Rubin) or LIML; Over-identification test rejects (sp.estat 'overid') -> At least one instrument is invalid; drop instruments or switch to just-identified LIML. Alternatives: sp.iv, sp.anderson_rubin_ci, sp.dml, sp.deepiv. Typical minimum...
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| y | Yes | Outcome variable column name or outcome array. | |
| grid | No | Grid of d-values (default 30 quantile-evenly spaced) | |
| seed | No | Random seed for reproducible stochastic steps. | |
| alpha | No | Significance level for confidence intervals and tests. | |
| ridge | No | Tikhonov regularisation | |
| treat | Yes | Continuous treatment D | |
| detail | No | Payload depth: 'minimal' (~150 tokens) for sub-step calls where only the point estimate is needed; 'standard' (~1K tokens) for diagnostics + coefficient table; 'agent' (~2K tokens, default) adds violations / next_steps / suggested_functions so the LLM can plan its next call without another round-trip. | agent |
| n_boot | No | Number of bootstrap replications. | |
| as_handle | No | If true, cache the fitted result on the server and return result_id + result_uri alongside the JSON payload so a subsequent tools/call can chain without re-running. | |
| bandwidth | No | Silverman default | |
| data_path | Yes | Absolute path or URL to a data file. Supported: .csv / .tsv / .txt (delimited), .parquet / .pq, .feather / .arrow, .xlsx / .xls, .dta (Stata), .json / .jsonl. Schemes: file://, s3://, gs://, https://. | |
| result_id | No | Optional handle to a previously-fitted result (returned by an earlier call when as_handle=true). Tools that operate on a fitted object accept this in place of re-supplying data_path + columns. | |
| instrument | Yes | Continuous instrument Z | |
| data_columns | No | Optional column projection. Parquet/Feather/Stata loaders honour this for fast partial reads. | |
| data_sample_n | No | Optional uniform random subsample size (seed=0, deterministic) — useful on huge panels. |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
No arguments | |||