In-class exercise

Slides¶

• Introduction: Approaches in Applied Micro

• Introduction: A framework for causal analysis

Task 1: Section 2.2¶

Skim through the beginning of Section 2.2 up to and including the second paragraph of page 4794. (this is pretty much what we talked about before).

We stick to the case of binary $S$.

1. What do the authors mean when writing “This may be a nondegenerate random variable or a degenerate random variable.” (just below Equation (2.1))

2. What is the difference between $Y(1; \omega) - Y(0; \omega)$ and $R(1; \omega) - R(0; \omega)$?

3. Explain, in your own words, the two aspects of a policy $\tau$ in the definition of the second paragraph of page 4794.