Lecture 05 - PAM 3300: Caual Reasoning (cont) What can be a...

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PAM 3300: Caual Reasoning (cont)
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What can be a cause? For something to be a cause, it must be possible (at least hypothetically) to expose every unit under study to the cause. Being perceived to be a woman… ok Being a woman … probably not? “No causation without manipulation”
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Causal questions and SUTVA The Stable Unit Treatment Value Assumption: The a priori assumption that Y t (u) will be the same no matter what mechanism is used to assign t to u, and no matter what treatments the other units receive, for all u in U. Rules out overly broad descriptions of the treatments (e.g., nurse provided aspirin vs. doctor provided aspirin). Rules out General Equilibrium effects.
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When are causal questions well-posed? Ex. 1 “What’s the effect of divorce on children?” What’s the counterfactual? Different mechanisms may have different effects Marriage promotion (counseling, etc.) Divorce prohibition
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When are causal questions well-posed? Ex. 2 What are causal questions asked in each paper? Are the causal questions well-posed in the sense described by Holland (1986)?
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PAM 3300: Primer on Regression Analysis
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between two variables Descriptive questions: How do average earnings vary with education levels? Causal questions: What’s the effect of education on earnings? Both questions involve the correlation between earnings and
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Lecture 05 - PAM 3300: Caual Reasoning (cont) What can be a...

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