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What is the outcome variable and what is the treatment

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Reference no: EM132456875

Consider the following three causal questions:

  • Many firms, particularly in southern European countries, are small, and owned and run by families. Are family owned firms growing more slowly than firms with a dispersed ownership?
  •  What is the e§ect of studying economics rather than sociology on the salaries of university graduates?
  •  What is the e§ect of mortgage interest rates on the number of new housing starts? For each of these questions answer the following:
    1. What is the outcome variable and what is the treatment?
    2. DeÖne the counterfactual outcomes Y0i and Y1i.
    3. What plausible causal channel(s) runs directly from the treatment to the outcome?
    4. What are possible sources of selection bias in the raw comparison of outcomes by treatment status? Which way would you expect the bias to go and why?

Reference no: EM132456875

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