1 00:00:00,900 --> 00:00:01,900 ♪ [music] ♪ 2 00:00:03,800 --> 00:00:05,700 - [Narrator] Welcome to Nobel conversations. 3 00:00:07,300 --> 00:00:10,240 In this episode, Josh Angrist and Guido Imbens, 4 00:00:10,240 --> 00:00:12,000 sit down with Isaiah Andrews 5 00:00:12,000 --> 00:00:14,303 to discuss how the research was initially received 6 00:00:14,900 --> 00:00:17,736 and how they responded to criticism. 7 00:00:18,700 --> 00:00:19,300 At the time, did you feel like you are on to something, 8 00:00:20,400 --> 00:00:24,000 you felt like this was the beginning of a whole line of work 9 00:00:24,000 --> 00:00:27,400 that you felt like was going to be important or...? 10 00:00:27,600 --> 00:00:30,100 Not so much that it was a whole line of work, 11 00:00:30,100 --> 00:00:32,600 but certainly I felt like, "Wow, this--" 12 00:00:32,600 --> 00:00:34,700 We proved something that people didn't know before, 13 00:00:34,700 --> 00:00:39,000 that it was worth knowing. 14 00:00:39,000 --> 00:00:40,000 Yeah, going back compared to my job market papers having-- 15 00:00:41,600 --> 00:00:45,900 I felt this was actually a very clear crisp result. 16 00:00:46,400 --> 00:00:48,400 But there were definitely was mixed reception 17 00:00:48,900 --> 00:00:53,200 and I don't think anybody said that, 18 00:00:53,300 --> 00:00:56,900 "Oh, wow, this is already, something." 19 00:00:57,100 --> 00:00:59,600 No, which is the nightmare scenario for a researcher 20 00:01:00,300 --> 00:01:03,200 where you think you've discovered something 21 00:01:03,300 --> 00:01:04,800 and then somebody else says, "Oh, I knew that." 22 00:01:05,000 --> 00:01:08,000 But there were definitely was a need to convince people 23 00:01:08,000 --> 00:01:09,000 that this was worth knowing, that instrumental variables 24 00:01:09,000 --> 00:01:12,800 estimates a causal effect for compliers. 25 00:01:13,200 --> 00:01:18,000 Yeah, but even though it took a long time 26 00:01:18,600 --> 00:01:20,400 to convince a bigger audience, 27 00:01:20,700 --> 00:01:24,600 sometimes even fairly quickly, the reception was pretty good 28 00:01:24,800 --> 00:01:27,000 among a small group of people. 29 00:01:27,200 --> 00:01:31,500 Gary, clearly liked it a lot from the beginning 30 00:01:31,800 --> 00:01:34,600 and I remember, because at that point Josh had left for Israel, 31 00:01:34,700 --> 00:01:37,400 but I remember explaining it to Don Ruben 32 00:01:37,600 --> 00:01:43,700 and he was like, "Yeah, this really is something here." 33 00:01:43,800 --> 00:01:47,200 Not right away though, Don took some convincing. 34 00:01:47,500 --> 00:01:48,400 By the time you got to Don, 35 00:01:48,500 --> 00:01:51,500 there have been some back and forth with him 36 00:01:51,800 --> 00:01:53,500 and in correspondence actually. 37 00:01:53,700 --> 00:01:56,700 But I remember at some point getting a call or email from him 38 00:01:56,700 --> 00:02:02,300 saying that he was sitting at the airport in Rome 39 00:02:02,500 --> 00:02:03,700 and looking at the paper and thinking, 40 00:02:03,700 --> 00:02:07,000 "Yeah, no actually, you guys are onto something." 41 00:02:07,000 --> 00:02:09,800 We were happy about 42 00:02:09,800 --> 00:02:10,800 but that took longer than I think you remember. 43 00:02:10,800 --> 00:02:12,500 Yeah, it wasn't right away 44 00:02:12,600 --> 00:02:13,600 [laughter] 45 00:02:13,700 --> 00:02:16,500 because I know that I was back in Israel by the time that happened. 46 00:02:16,500 --> 00:02:18,300 I'd left for Israel in the summer-- 47 00:02:18,400 --> 00:02:22,300 I was only at Harvard for two years. We had that one year. 48 00:02:22,600 --> 00:02:25,700 It is remarkable, I mean, that one year was so fateful for us. 49 00:02:25,900 --> 00:02:27,200 - [Guido] Yes. 50 00:02:28,500 --> 00:02:30,200 I think we understood there was something good happening, 51 00:02:30,200 --> 00:02:34,000 but maybe we didn't think it was life-changing, only in retrospect. 52 00:02:34,400 --> 00:02:35,400 ♪ [music] ♪ 53 00:02:35,800 --> 00:02:38,300 - [Isaiah] As you said, it sounds like a small group of people 54 00:02:38,300 --> 00:02:39,300 were initially quite receptive, 55 00:02:39,300 --> 00:02:41,000 perhaps took some time for a broader group of people 56 00:02:44,400 --> 00:02:46,700 to come around to seeing the LATE framework 57 00:02:46,700 --> 00:02:47,700 as a valuable way to look at the world. 58 00:02:47,700 --> 00:02:50,000 I guess, in over the course of that, 59 00:02:50,100 --> 00:02:52,200 were their periods where you thought, 60 00:02:52,300 --> 00:02:53,200 maybe the people saying this wasn't a useful way 61 00:02:53,300 --> 00:02:55,800 to look at the world were right? 62 00:02:55,800 --> 00:02:58,400 Did you get discouraged? How did you think about? 63 00:02:58,400 --> 00:03:00,900 I don't think I was discouraged but the people who were saying 64 00:03:00,900 --> 00:03:03,900 that we're smart people, well informed metricians, 65 00:03:05,000 --> 00:03:08,000 sophisticated readers 66 00:03:08,900 --> 00:03:11,800 and I think the substance of the comment was, 67 00:03:11,800 --> 00:03:15,600 this is not what econometrics is about. 68 00:03:16,300 --> 00:03:20,700 Econometrics was being transmitted at that time was about structure. 69 00:03:21,300 --> 00:03:24,700 There was this idea that there's structure in the economy 70 00:03:25,100 --> 00:03:27,100 and it's our job to discover it 71 00:03:27,200 --> 00:03:31,200 and what makes it structure is it's essentially invariant 72 00:03:31,900 --> 00:03:34,800 and so we're saying, in the LATE theorem, 73 00:03:34,900 --> 00:03:39,100 that every instrument produces its own causal effect, 74 00:03:39,300 --> 00:03:42,100 which is in contradiction to that to some extent 75 00:03:42,400 --> 00:03:45,300 and so that was where the tension was. 76 00:03:45,300 --> 00:03:46,300 People didn't want to give up that idea. 77 00:03:46,300 --> 00:03:47,700 Yeah, I remember once people were started 78 00:03:51,200 --> 00:03:56,100 arguing more more vocally against that, 79 00:03:56,900 --> 00:04:00,700 that never really bothered me that much. 80 00:04:01,000 --> 00:04:03,700 It seems clear that we had a result there 81 00:04:04,900 --> 00:04:08,100 and it was somewhat controversial, 82 00:04:08,100 --> 00:04:09,100 but controversial in a good way. 83 00:04:09,100 --> 00:04:10,400 It was clear that people felt 84 00:04:10,700 --> 00:04:12,800 they had to come out against it because-- 85 00:04:14,100 --> 00:04:17,500 Well, I think what we think it's good now 86 00:04:17,500 --> 00:04:20,800 we might not have loved it at the time. 87 00:04:20,800 --> 00:04:21,800 I remember being somewhat, the more upset-- 88 00:04:21,800 --> 00:04:26,400 there was some dinner where someone said, 89 00:04:26,700 --> 00:04:28,300 "No, no, that paper with Josh, 90 00:04:28,800 --> 00:04:32,600 that was doing a disservice to the profession." 91 00:04:32,600 --> 00:04:34,400 We definitely had reactions like that. 92 00:04:34,800 --> 00:04:38,200 At some level, that may be indicative of the culture 93 00:04:38,400 --> 00:04:40,000 in general in economics at the time. 94 00:04:41,400 --> 00:04:44,300 I thought back later, what if that'd happened now, 95 00:04:44,600 --> 00:04:48,200 if I was a senior person sitting in that conversation, 96 00:04:48,300 --> 00:04:52,200 I would call that out because it really was not appropriate-- 97 00:04:53,000 --> 00:04:54,200 - [Josh] But it wasn't so bad. 98 00:04:54,600 --> 00:04:57,300 I think the criticism is-- 99 00:04:57,700 --> 00:05:01,500 It wasn't completely misguided, it was maybe wrong. 100 00:05:01,800 --> 00:05:04,700 No, no, but you can say the paper is wrong 101 00:05:05,400 --> 00:05:07,300 but it's saying that 102 00:05:07,300 --> 00:05:08,300 it's a disservice to the profession, 103 00:05:08,300 --> 00:05:09,300 that's not really-- 104 00:05:09,300 --> 00:05:10,300 Personal. 105 00:05:10,300 --> 00:05:13,900 Yes, and doing that, not to me, 106 00:05:13,900 --> 00:05:14,900 but in front of my senior colleagues. 107 00:05:14,900 --> 00:05:17,700 But nobody was saying the result was wrong 108 00:05:17,700 --> 00:05:18,700 and I remember also, 109 00:05:18,700 --> 00:05:20,900 some of the comments were thought-provoking 110 00:05:20,900 --> 00:05:24,000 so we had some negative reviews, 111 00:05:24,400 --> 00:05:26,300 I think on the average causal response paper. 112 00:05:26,500 --> 00:05:30,600 Somebody said, "These compliers you can't figure out who they are." 113 00:05:31,500 --> 00:05:31,900 Right. 114 00:05:32,000 --> 00:05:33,000 It's one thing to say 115 00:05:33,000 --> 00:05:35,200 you're estimating the effect of treatment 116 00:05:35,200 --> 00:05:36,200 on the treated or something like that. 117 00:05:36,200 --> 00:05:38,400 You can tell me who's treated, 118 00:05:38,600 --> 00:05:42,600 people in the CPS, you can't tell me who's a complier. 119 00:05:42,800 --> 00:05:46,800 So that was a legitimate challenge. 120 00:05:46,800 --> 00:05:47,800 That's certainly fair and I can see why 121 00:05:47,800 --> 00:05:53,700 that part made people a little uneasy and uncomfortable. 122 00:05:53,800 --> 00:05:54,200 Yeah. 123 00:05:54,300 --> 00:05:56,400 But it's a at the same time 124 00:05:56,900 --> 00:06:00,800 because it showed that you couldn't really go beyond that, 125 00:06:01,500 --> 00:06:05,500 it was very useful thing to realize. 126 00:06:05,500 --> 00:06:06,500 I remember on the day, 127 00:06:06,500 --> 00:06:11,100 we got to the key result that I was thinking, 128 00:06:11,100 --> 00:06:12,100 "Wow, this is as good as it gets. 129 00:06:12,100 --> 00:06:16,500 Here we actually have an insight but clearly--" 130 00:06:17,500 --> 00:06:21,000 And we had to sell it. 131 00:06:21,000 --> 00:06:22,000 For quite a few years, we had to sell 132 00:06:22,000 --> 00:06:24,800 and it's proven to be quite useful. 133 00:06:25,500 --> 00:06:29,300 I don't think we understood that it would be so useful at the time. 134 00:06:30,100 --> 00:06:34,600 No, I did feel early on this was a substantial insight. 135 00:06:34,600 --> 00:06:35,600 - [Josh] Yeah we [learned] something. 136 00:06:35,600 --> 00:06:40,400 But I did not think goals were there. 137 00:06:40,500 --> 00:06:42,400 I don't think we were aiming for the Nobel. 138 00:06:42,650 --> 00:06:43,650 [laughter] 139 00:06:43,900 --> 00:06:46,300 We were very happy to get that note in Econometrica. 140 00:06:47,600 --> 00:06:48,600 ♪ [music] ♪ 141 00:06:49,900 --> 00:06:52,800 - [Isaiah] Are there factors or are ways of approaching problems 142 00:06:53,200 --> 00:06:55,600 that lead people to be better at recognizing the good stuff 143 00:06:55,600 --> 00:06:56,600 and taking the time to do it as opposed to dismissing it? 144 00:06:56,600 --> 00:06:57,700 - [Josh] Sometimes I think it's helpful. 145 00:06:57,700 --> 00:07:00,900 If you're trying to convince somebody 146 00:07:00,900 --> 00:07:01,900 that you have something useful to say 147 00:07:01,900 --> 00:07:04,500 and maybe they don't speak your language, 148 00:07:04,700 --> 00:07:09,900 you might need to learn their language. 149 00:07:10,300 --> 00:07:10,850 Yes, yes, exactly. 150 00:07:10,850 --> 00:07:11,400 That's what we did with Don, we figured out how to-- 151 00:07:12,200 --> 00:07:16,800 I remember we had a very hard time 152 00:07:16,800 --> 00:07:17,800 explaining the exclusion restriction to Don, 153 00:07:17,800 --> 00:07:19,700 maybe rightfully so, 154 00:07:20,000 --> 00:07:24,400 I think Guido and I eventually figured out 155 00:07:24,400 --> 00:07:25,400 that it wasn't formulated very clearly, 156 00:07:25,400 --> 00:07:28,700 and we came up with a way to do that 157 00:07:28,700 --> 00:07:29,700 in the potential outcomes framework 158 00:07:29,700 --> 00:07:32,700 that I think worked for the three of us. 159 00:07:33,400 --> 00:07:35,800 Yeah, well, it worked for the bigger literature 160 00:07:35,800 --> 00:07:38,100 but I think what you're saying there is exactly right, 161 00:07:38,100 --> 00:07:39,100 you need to figure out how not just say, 162 00:07:41,400 --> 00:07:43,900 "Okay well, I've got this language and this this works great 163 00:07:43,900 --> 00:07:45,900 and I've got to convince someone else to use the language. 164 00:07:45,900 --> 00:07:47,600 You could first figure out what language they're using 165 00:07:49,600 --> 00:07:51,200 and then only then, can you try to say, 166 00:07:51,200 --> 00:07:55,700 "Wow, but here you thinking of it this way," 167 00:07:55,700 --> 00:07:56,700 but that's actually a pretty hard thing to do, 168 00:07:56,700 --> 00:08:00,000 get someone from a different discipline, 169 00:08:00,200 --> 00:08:02,300 convincing them, two junior faculty in a different department 170 00:08:02,300 --> 00:08:03,300 actually have something to say to you, 171 00:08:03,300 --> 00:08:06,600 that's that takes a fair amount of effort. 172 00:08:07,500 --> 00:08:10,200 Yeah, I wrote on a number of times, in fairly long letters. 173 00:08:10,700 --> 00:08:14,500 I remember thinking this is worth doing, 174 00:08:14,600 --> 00:08:17,600 that if I could convince Don 175 00:08:18,450 --> 00:08:19,450 that would validate the framework to some extent. 176 00:08:20,300 --> 00:08:24,000 I think both you and Don were 177 00:08:24,000 --> 00:08:25,000 a little bit more confident that you were right. 178 00:08:25,000 --> 00:08:27,500 Well, we used to argue a lot 179 00:08:27,500 --> 00:08:28,500 and you would sometimes referee those. 180 00:08:28,500 --> 00:08:29,500 [laughter] 181 00:08:29,800 --> 00:08:30,700 That was fun. 182 00:08:30,800 --> 00:08:34,100 It wasn't hurtful. 183 00:08:35,200 --> 00:08:39,600 I remember getting a little testy once, 184 00:08:39,600 --> 00:08:40,600 we had lunch in The Faculty Club 185 00:08:40,600 --> 00:08:44,400 and we're talking about the draft lottery paper. 186 00:08:45,200 --> 00:08:47,600 We were talking about never takes 187 00:08:47,700 --> 00:08:51,000 as people wounded serve in the military irrespective of 188 00:08:51,200 --> 00:08:53,700 whether they were getting drafted 189 00:08:54,500 --> 00:08:58,700 and you and Don said something about shooting yourself in the foot, 190 00:08:59,800 --> 00:09:02,400 as a way of getting out of the military 191 00:09:02,400 --> 00:09:03,400 and that may be the exclusion restriction 192 00:09:03,400 --> 00:09:05,300 for never takes wasn't working 193 00:09:06,300 --> 00:09:08,900 and then the other one would say, 194 00:09:08,900 --> 00:09:11,250 "Well, yes you could do that 195 00:09:11,250 --> 00:09:12,250 but why would you want to shoot yourself in the foot?" 196 00:09:12,250 --> 00:09:12,825 [laughter] 197 00:09:12,825 --> 00:09:13,400 It got a little [out of hand] there. 198 00:09:13,400 --> 00:09:17,600 I usually go for moving to Canada, for my example, 199 00:09:18,150 --> 00:09:19,150 when I'm teaching that. 200 00:09:19,700 --> 00:09:24,000 But he thinks it's tricky, 201 00:09:24,100 --> 00:09:27,900 I get students coming from computer science 202 00:09:28,100 --> 00:09:29,900 and they want to do things on causal inference 203 00:09:30,400 --> 00:09:33,700 and it takes a huge amount of effort to figure out 204 00:09:33,700 --> 00:09:36,000 how they actually thinking about problem 205 00:09:36,000 --> 00:09:37,000 and whether there's something there 206 00:09:37,000 --> 00:09:38,500 and so, now over the years, 207 00:09:38,500 --> 00:09:40,600 I've got a little more appreciation for the fact 208 00:09:40,800 --> 00:09:42,100 that Don was actually willing to-- 209 00:09:42,200 --> 00:09:46,000 It took him a while, but he did engage first with Josh 210 00:09:46,400 --> 00:09:47,500 and then with both of us 211 00:09:47,700 --> 00:09:51,000 and rather than dismissing and say, 212 00:09:51,500 --> 00:09:54,800 "Well, okay I can't figure out what these guys are doing 213 00:09:54,800 --> 00:09:55,800 and it's probably just not really interesting." 214 00:09:57,200 --> 00:10:00,300 Everybody always wants to figure out quickly, 215 00:10:00,300 --> 00:10:04,000 you want to save time 216 00:10:04,000 --> 00:10:05,000 and you want to save your brain cells for other things. 217 00:10:05,000 --> 00:10:07,000 The fastest route to that is to figure out 218 00:10:07,000 --> 00:10:08,000 why you should dismiss something. 219 00:10:08,000 --> 00:10:09,000 Yes. 220 00:10:09,000 --> 00:10:11,300 I don't need to spend time on this. 221 00:10:11,500 --> 00:10:12,500 ♪ [music] ♪ 222 00:10:12,700 --> 00:10:15,300 - [Narrator] If you'd like to watch more 223 00:10:15,300 --> 00:10:16,300 Nobel conversations, click here, 224 00:10:16,300 --> 00:10:18,600 or if you'd like to learn more about econometrics, 225 00:10:18,700 --> 00:10:21,300 check out Josh's "Mastering Econometrics" series. 226 00:10:21,800 --> 00:10:24,700 If you'd like to learn more about Guido, Josh, and Isaiah 227 00:10:24,900 --> 00:10:26,400 check out the links in the description. 228 00:10:26,702 --> 00:10:28,017 ♪ [music] ♪