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Angrist and Imbens’ work focuses on addressing a fundamental challenge in economics: figuring out what causes what. In the real world, it's often impossible to run a perfect experiment. You can’t randomly assign people to different situations and see how they react. But they found ways to get around this, by developing methodologies that allow economists to isolate the effects of a specific intervention or policy, even when a perfect experiment isn’t possible. This is where the concept of *instrumental variables* comes into play. Angrist and Imbens have done some amazing work in this area. Instrumental variables are a statistical technique. These help economists to estimate the causal effect of a treatment or intervention. By identifying something that influences the treatment (but not the outcome directly), economists can use it to get a clearer picture of how the treatment affects the outcome.
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