Lecture 4 - Roadmap
Last Lecture, we talked about the linear regression model with
cross-sectional data and asked when the coecients in the linear
regression model have a causal interpretation.
Causal
ARE 107 Problem Set 1
Due January 26, 2017 in Class
Prepared by Dalia Ghanem and Sophie Xu
Note: You are welcome to work in groups of a maximum of three students. No late assignment will be
accepted.
Lecture 4 with answers
ARE 107: Econometrics for Business Decisions
Sophie. Xu
1/19/2017
1 / 16
Announcement
I
Problem set 1 due Jan 26 in class.
Note: You are welcome to work in groups of a maximum o
ARE 107: Econometrics for Business Decisions
Lecture 3
Sophie. Xu
UC Davis
Recap
New office hour: Tuesday 12-1pm, and Thursday 9-10am. Ok?
Any question so far?
= =
= ( = = ) + ( = = )
Average Caus
Lecture 5 with answers
ARE 107: Econometrics for Business Decisions
Sophie. Xu
25 January, 2017
1 / 17
Announcement
I
Typo in the Problem Set 1. Corrected Problem set 1 is now
available on Smartsite.
Lecture 5
ARE 107: Econometrics for Business Decisions
Sophie. Xu
24 January, 2017
1 / 16
Announcement
I
Typo in the Problem Set 1. Corrected Problem set 1 is now
available on Smartsite.
Question 1, p
ARE 107 Lecture Notes
Lecture 1
Dalia Ghanem, UC Davis WELCOME TO ARE 107
How does it build on ARE 106?
ARE 106 is a course in linear regression with crossâ€”sectional data, e.g. a
random sample of indi
ARE 107 Lecture Notes
Lecture 3
Dalia Ghanem, UC Davis
1
Roadmap
So far.
I
Predictive vs. Causal Modeling
I
Randomized Control Trials
Causal Effect: E [Y1i Y0i |Di = 1]
The conditional expectation giv
ARE 107 Solutions to In-class Exercises
Dalia Ghanem, UC Davis
1
Lecture 1
Exercise 1.
Question 1: Y is quantity of orange juice sold, X is 1 if it is a rainy week
and 0 otherwise. We want to estimate
Lecture 5 - Roadmap
So far.
Randomized Control Trials: Random Assignment Eliminates Selection
Bias
Linear Model with Observation Data: Exogeneity Eliminates Selection
Bias
This week.
Linear Instrum
UC Davis
Dalia Ghanem
ARE 107 Problem Set 1
Due April 19, 2016 in Class
Late Assignments Not Accepted!
Instructions. You are welcome to work in groups of a maximum of three students. Each group
member
Lecture 6 - Roadmap
This week.
Linear Instrumental Variables Model
Reading: Chapter 3: Mastering Metrics
- Lecture 5: Treatment Variable
- Today: Linear Model with Continuous Regressor
c
Dalia
Ghanem
ARE 107: Econometrics For Business Decisions
University of California, Davis
Spring 2016 Syllabus
Instructor:
TA:
Class Website:
Lectures:
Section:
Assignments:
Exams:
Grading:
Dalia Ghanem, OH: Tue a
UC Davis
Dalia Ghanem
ARE 107 Formula Sheet
Midterm 1
If Yi is an outcome variable and Di is a treatment variable,
E rYi |Di
If Yi
OLS
If Yi
1s E rYi|Di 0s E rY1i Y0i|Di 1s
Xi
ui ,
Cov pXi , ui q
V a
UC Davis
Dalia Ghanem
ARE 107 Problem Set 1
Answer Key
I. (a) The key issue in comparing the differences in average sales of those stores that opted
for the discount and those that did not is selectio
ARE 107: Econometrics for Business Decisions
Lecture 2
Sophie. Xu
UC Davis
Roadmap
Syllabus
Causal vs. Predictive Modeling
Differentiate causal modeling from predictive modeling
From a decision-ma