Math for Causal Inference
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The Science Table

Twelve workers with both potential outcomes: hide the missing half, randomise, and watch estimates centre on the ATE.

Day 31: The Rubin Causal Model & Potential Outcomes
workerTY(0)Y(1)effectobserved Y
A1?14?14
B013??13
C1?8?8
D011??11
E1?9?9
F016??16
G010??10
H08??8
I1?13?13
J1?13?13
K1?11?11
L011??11
true ATE
1.17
hidden in practice
true ATT
1.50
treated workers only
difference in means
-0.17
what the data show
-4-20246difference in means across experimentsRun experiments to build the distribution of estimates
0 experiments; average estimate — versus ATE 1.167.

Twelve workers' earnings without (Y0) and with (Y1) training, in $1,000. In real data only one column per worker is visible; the other is '?'. Random assignment gives estimates that scatter around the ATE; self-selection (enrol if the gain exceeds 2) does not.