4.15 ATE: Average Treatment Effect

  • Average Treatement Effect: The average difference in the pair of potential outcomes averaged over the entire population of interest (at a particular moment in time)
    • ATE = E[Yi1 - Yi0]
    • Time is omitted from the notation
    • Q: Which observations does that concern in the table below?18
Unit Di (Aspirin: Yes/No) Yi1 (Pain | Aspirin) Yi0 (Pain | NoAspirin)
Simone 1 0 ?
Julia 1 1 ?
Paul 0 ? 1
Trump 0 ? 0
Fabrizio 0 ? 0
Diego 0 ? 0
  • Again.. can’t estimate ATE without observing both potential outcomes (Even with infinite sample size)

  1. All…