For each of the three causal questions answer the following (and label your answ

Question

For each of the three causal questions answer the following (and label your answers clearly):

(a) What is the outcome variable and what is the treatment?

(b) Define the counterfactual outcomes Yi(0) and Yi(1)

(c) What plausible causal channel(s) runs directly from the treatment to the outcome? In what direction would that push the results?

(d) Is reverse causality a potential concern?

(e) What are possible sources of selection and/or omitted variable bias in the raw comparison of outcomes and treatment status? Which way(s) would you expect the bias to go and why?

(1) Is it the case that in counties with a higher share of opioid addiction, doctors are more lenient when they write opioid prescriptions?

(2)Are rebellions more likely to succeed when more of the population joins them?

(3)Are countries who export more cars wealthier?

Explanation / Answer

Solution:

A) Outcome variables & Treatment

The outcome variables are those which are basically dependent variable. Let suppose we are studying the impact of skill on productivity. Here level of productivity is the outcome variable. This is variable which are examined the effect of some treatment. On the other hand treatment variable are those variable which are independent and on the basis this variable outcome variable is studied. In the above example skill is the treatment variable.

B) Counterfactual outcomes Yi(0) and Yi(1)

The unobserved outcomes is generally called counterfactual outcome. Observed outcome is called factual outcome. In causality if we do not explain the unobserved portion which is happening in the result then this unobserved outcomes is called counterfactual outcome. Yi(0) is the outcome when outcome variable is 0. Here 0 and 1 means we have preassumed two outcomes only 0 and 1 of a quality variable. Yi(1) is the outcome variable when it shows 1. If we get a result other outcomes which has not been taken by 0 and 1 then it is called counterfactual outcome.

C)

Let suppose we are studying salary (outcome variable) on who study sociology and economics (treatment variable). If we get a relational channel that economics back ground students are more skillful and higher salaries. If we get this relationship from causality of economics studies to higher wages outcome this is a direct relationship. It will push the result in positive direction.

D)

Yes reverse causality is always a potential concern. Let supposeThere is a causality of heartattack from family history if we get there is case of heartattack without any family history then it is always a matter and we need to study more on that case. Here in the last example of salary if persons with sociology background then we need to study more.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.