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PAM 4380 february 11

PAM 4380 february 11 - Outline 2.2 Empirical methods in...

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Outline: 2/11/2011 2.2 Empirical methods in economics and public health Estimating causal treatment effects Definition Regression analysis Selection bias ↔ endogeneity bias Reading: Angrist & Pischke Next time: Taubes article Homework #2 due next Friday, 2/18
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Causal Treatment Effects The causal question involves counterfactual potential outcomes: For a given subject i, what is the potential outcome given the treatment (Y 1i ) versus his or her potential outcome without the treatment (Y 0i ) ? Treatment effect = Y 1i - Y 0i In most observational data and most experiments, can’t observe both Y 1i and Y 0i For example, people are either smokers or non-smokers In experiments, subjects either assigned to the treatment group or the control group (In cross-over designs, subject can be assigned to both conditions, but there may be order and carryover effects)
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Example of treatment effect in observational data Group Sample Size Health Status Hospital 7,774 3.21 No hospital
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