1 - Causal effect 1 Definition-Causal effect is the...

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Causal effect 1. Definition--Causal effect is the difference in results of one event happening versus not happening. This is the potential outcomes definition. Causal effects tell us whether programs or interventions work. For example, they let us examine whether an incentive makes teachers show up and teach. The fundamental problem of causal effects is that the factual and counter-factual can NEVER occur at the same time. For example, we cannot re-run history to show what happens in Africa without aid. To overcome the fundamental problem, we need to make sure that the group that got intervention looks the same as the group that did not. Randomization – role in evaluating development policies 1. Definition--role in evaluating development policies- Randomization helps us evaluate development policies. It solves the selection problem in that each person has same probability of being assigned to the treatment or control group. The different results can then be attributed to treatment. For example, we can evaluate whether giving
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This note was uploaded on 11/17/2011 for the course IDS 100B taught by Professor Ross during the Spring '11 term at UCLA.

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1 - Causal effect 1 Definition-Causal effect is the...

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