Chapter 7 of 10All chapters
Chapter 7 of 10
Causal inference
When you cannot randomise.
Confounding
Observational comparisons mix the effect of the treatment with the reasons people received it. Adjustment helps and never fully substitutes for randomisation.
- Adjusting for a variable on the causal path removes part of the real effect.
- Draw the assumed causal diagram before choosing what to control for.
Quasi-experiments
Difference in differences, regression discontinuity and instrumental variables exploit near-random variation. Each rests on assumptions that should be stated and tested.