On the Testability of Causal Models with Latent and Instrumental
  Variables
  Certain causal models involving unmeasured variables induce no independence
constraints among the observed variables but imply, nevertheless, inequality
contraints on the observed distribution. This paper derives a general formula
for such instrumental variables, that is, exogenous variables that directly
affect some variables but not all. With the help of this formula, it is
possible to test whether a model involving instrumental variables may account
for the data, or, conversely, whether a given variables can be deemed
instrumental.
