clear
	set obs 20000											// set number of observations to 20,000

	* confounder 
		gen momedu = rnormal(8,1)							// generate mom's education, centered at 8 years
		*hist momedu
	
	* exposure 
		capture drop edu
		gen edu = 1.5*momedu + 2*invnorm(uniform())			// generate own education based on mom's education, mean ~ 12 years 
		*hist edu
		
	* outcome 
		capture drop cog	
		gen cog = 4*momedu + 2*edu + 10*invnorm(uniform())	// generate cogntion based on own and mom's education 
		*hist cog

* Confounding 
	* analysis without confounder
		reg cog edu
		
	* analysis with confounder 
		reg cog edu momedu
		
		
* Mediation
	* step 1
		reg cog momedu 
		
	* step 2
		reg edu momedu 
		
	* steps 3, 4
		reg cog edu momedu