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Summary ECON0019 Quant Economics & Econometrics Term 2 Notes

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Study Notes for Term 2

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TERM 2


DONNEEKI. Potential Outcomes ond Experiments
T


=7 Causality eond Petentinl Outems
- In eunumitaes, delin rousel ettects wiing fomi nert it potstal eve
Xi binon treatmunt indicetor (I it tectid, Oirnot
Till) pibatial outconit endiridnal i treoted
T.Co) p.ontal ontam if Indindnoli net techd
4. actual obseived outwm
- Fundomurtol Pablem ut lonial inteana.

We can unly wbsere omputeatorl ondcoms tor ruch indidual
Y: = X, Yi C1) 7 L1Xi)Y 10 ) connt simllemenity obere whotanw
hoppan to taald indindnal hod thhg mit been teold
- Iadırduol treutmurteteed: Y:C1)- Y.Co)
- Lausal Estimend C Populatun Aryl:

A7t (Averuge Teoimunt Eftrect): ECYCI)-401).

The meon coninl eftect across populute
B.telAry rutmunt Eltect on treoled) ECY1) - 400J/X=1)
Aug rausal &llet omrng thweadeolly treatt


=) Whl duo, oLs estimate reyrassıın estımas

-A SLR Y un hinory X erlimte ditteana inmevrs betmeen bected onu

untaolid groups
Bors ECTIX=1) - ECYIX=0)
=

BorS = ELY IV F1) -ECYl0) 1X 1 ) + EC%J1 X=/ ) -ECYW)1X=0)
A 77 Selertun birı

selctun bras: ditt in bosalom oulrany betuen keatmunt andcontal gaek

Fr womph it poople with lom job prospert Clown 80)
ore more lihe ly to signup to tung ,edamale nill be bend

, Date.



Eapeiunt Assignmunts CRCT)
In u rondomutd untelbd thal l61), tecth-t egnet
teothwst olsigno nchpcdilly
ot all tectmurt chardetrste
•indpen derp :XTT CYCOs, YU1)
.Ceniequens
b selecten bios elımaed CEC410)1x=1) - ElYCos 1X=0C(
Lr Thutir A78 = 4 11

n Bous corndatly idatifors ATE


=7 lon foundiny ond contelling towr obseaabe
observatemel Hudies, tutmnt ittin corslotd with pourtial outciу


Ia

dn to cun tounding fuctrs CNsithet altect buth tetment ossiged
and outw (I) WCothr uppurtunint.




X (tationrt) 7(woges)
Conditunal ignorablity Gseictien on
wI )104 ,C0TX
obstrebuil


ths ossums thut treutmnt is os youd as rndum within subpipaladirs
tht hwe the sam volu сtw

G 741X=1, W=w) -ECYIX=u, W=u)
= ECYCIJ -4W) 1X =1y Woa]+ ECYca) IXi=1, Wzu ] - ECYLUJ 1x-0'mat
SeGotin hios

-Dad anditinal ignoratiling, ditteana in mans withn specitee gy
Wsw elamots the linditiinal Averegt techd Ettir (CATE)
ECYCI) -Ylos I Wam]

The ATE cin be recorced by averuging the CATE acress all walms n
EC ECY1X =1, w)) -ECYIX=0, wJ
=ECECYL1)-810)/мС(

,Date.



Inlepratog Ols uith Costal

- Whn wrmp os uith youp turd eftteds CW):
Estimeh EC41 X *x, Wu) by f Cux)
E l taiawIXY
gl1) ECMien х

Glo) : soCuion7acrotipy,
Eocuien(71-X!(4


An cotmote et ATE ot ATE ghan by
六そ(なCゃっ)・S(40))
hon Liaver ay to chtoin tm som


५ o, Nok I[Wi =k J 1 Bo Xi 10
• Bas dvera't prtently eotm Ealos intracdes Erd inudd.
hskad, il gire niightd ovny it graup ipicitc conellad
Groyps ore weighted by thesie (pad ond verena of treutourt wnth

the greap tak1-N11. Gps inthony hyh or lim pahebilits
lundr weht becowe littlh eperiaualetin topprang nthn the
pk= PlWk) qx= PCVE1/Wek)
Bow E ntec
piitice ECYU) -YwI /wak)
tope higte eght in buthcae Clazer g)
gx 20 w 2 1 lume Uls weghtlitthe experiontatin inthy grn ind O1 1g

.in specl fae it RT, XWin which com uk doedpind
on kend so Bu =17G Cin RCT)
- Und, undilincl gavata liG XTL Cs, 91) IW oestrin
ME =ECEC YIX =I, W) -E(41x=0,u11
Aithronmeh, eHLmd EL4 1XTX,W)s leavict or den it aym
ECT IX=x, wz u J Yot Mowt. Bix
ATE Bo
7
mate
et1?
Ui4 (YotMo Wi 1B.xi) esli

41 =Y0 t 100 W1 1 BoxI Vi ote GlvilXi, wi)30
Fam WURine kam OUs yHlds mbired endo lmoand Mee
Lit he diont imhd Wi in rey 7 oitted vonckle h.os

, Date,


Custul Voncbls in пт
make s6 sulh -7 et

- vonables ditemined po treatr (pra t4tmunh
Good costrels:
In on RC, addng goud antits doesnt chongy the estimah bal can

improve eltuearg by radacing rendaal wnaru
- Bad Contols vanchas comsally alledd by teatmel. Contalling tor

thse over contul rey und ut utt a chenn thagh Kirps
I, mining causal inerpratetus




4
X
a




La) gued cuntul, conditinct ghnilig hulds but uncendilneldosry
(61 W bod antal, medals the etred ol Xn Adaclly, culo ofe

a chenil by whah Xcon irp1
ul W bod crntul, Wis canall by Xond 9. Almrit lie untelly

tr entues Vnnditınal ijmrehily bulds hut wnditionigreon615
doesnit


) limitotins ut Enpenmats
-
Thect to Inbraal Volidity. CDuss the expermurt meaure whod it cloins laani

1) Failure 10 rondumme: protucol flomeds groups syrbmetically ditferas
2) Prdial urplionu: pupl astiga to tectmnt bud drad toke itior

thuse in cintnal do. Thos athnnats diltecae betever goс

3) Spillover et tmed ot ue unil atlet onithe unit outo


) Akitin: paticiports ban the Hady. t lag cerelaldath pitntial cnen,
itintrdaes sahden hen

-Threads to esturnal velidety (con red lt be gearluad?
erll moy mut opnly it pepulateon chongu, Cerg. small toma7 повлиоро

treatmit quolidy weolunnd whasealed
equilit pillovr etteuls my emegs otseole I mo job tranng lows wa
tu unta

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