Class 8: Selection on Observables

This class begins our first attempt to estimate a causal treatment effect. We’ll do so with a few approaches, all of which rely on the combination of a “selection on observables” or “conditional independence” assumption, along with a “common support” assumption.

Objectives

  • Understand and explain the differences between matching and re-weighting
  • Explain the implicit weighting in OLS regression and how to avoid such weighting
  • Calculate an ATE or ATT using regression, matching, and weighting

Activities