4.19 ATE: Identification Problem

  • YES: \(\pi\) using E[Di]

  • YES: E[Yi1|Di = 1] using E[Yi|Di = 1]; E[Yi0|Di = 0] using E[Yi|Di = 0]

  • NO: E[Yi0|Di = 1]): Average outcome under control (Yi0) for those units in the treatment condition (Di = 1)

  • NO: E[Yi1|Di = 0]): Average outcome under treatment (Yi1) for those in the control condition (Di = 0)

  • E[Yi1 - Yi0] = 2/6 \(\times\) (0.5 - ?) + 4/6 \(\times\) (? - 0.25)

Y = 1 Y = 0
D = 1 0.5 ?
D = 0 ? 0.25
  • Identification Problem: Two quantities are unobservable; We must rely on assumptions to identify ATE (fill em in)