Consider the potential outcomes framework from Section 2.7a, where y i (0) and y i (1) are

Question:

Consider the potential outcomes framework from Section 2.7a, where y_i(0) and y_i(1) are the potential outcomes in each treatment state.

(i) Show that if we could observe y_i(0) and y_i(1) for all i then an unbiased estimator of τ_ate would be

nELy(1) – y.(0)] = y(1) – y(0). i=1

This is sometimes called the sample average treatment effect.

(ii) Explain why the observed sample averages, y̅₀ and y̅₁, are not the same as y̅(0) and y̅(1), respectively, by writing y̅₀ and y̅₁ in terms of y_i(0) and y_i(1), respectively.

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Introductory Econometrics A Modern Approach

ISBN: 9781337558860

7th Edition

Authors: Jeffrey Wooldridge

Question Posted: Jul 02, 2020 04:14 AM

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Consider the potential outcomes framework from Section 2.7a, where y i (0) and y i (1) are

Question:

nELy(1) – y.(0)] = y(1) – y(0). i=1

Step by Step Answer:

i The population average treatment effect If we are able to ...View the full answer

Introductory Econometrics A Modern Approach

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