econ.EM econ.EM

1 articles

articles

econ.EM2026-07-013 minarXiv:2607.01429
The Data Watershed: How a Simple Yes/No Switch Reveals Multidimensional Models
On a topographic map, raindrops choose their path: falling on one slope, they flow into River A; on the other, into River B. An observer sees only the winding rivers (the response variables Y) and knows which slope the water came from (the instrument Z), but cannot see the drops themselves (the unobserved factors ε).