Consider the potential outcomes framework from Appendix 13.3. Suppose (X_{i}) is a binary treatment that is independent

Question:

Consider the potential outcomes framework from Appendix 13.3. Suppose \(X_{i}\) is a binary treatment that is independent of the potential outcomes \(Y_{i}(1)\) and \(Y_{i}(0)\). Let \(T E_{i}=Y_{i}(1)-Y_{i}(0)\) denote the treatment effect for individual \(i\).

a. Can you consistently estimate \(E\left[Y_{i}(1)\right]\) and \(E\left[Y_{i}(0)\right]\) ? If yes, explain how; if not, explain why not.

b. Can you consistently estimate \(E\left(T E_{i}\right)\) ? If yes, explain how; if not, explain why not.

c. Can you consistently estimate \(\operatorname{var}\left[Y_{i}(1)\right]\) and \(\operatorname{var}\left[Y_{i}(0)\right]\) ? If yes, explain how; if not, explain why not.

d. Can you consistently estimate \(\operatorname{var}\left(T E_{i}\right)\) ? If yes, explain how; if not, explain why not.

e. Do you think you can consistently estimate the median treatment effect in the population? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

Question Posted: