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VIOLATING IGNORABILITY OF TREATMENT BY CONTROLLING FOR TOO MANY FACTORS

Published online by Cambridge University Press:  22 August 2005

Jeffrey M. Wooldridge
Affiliation:
Michigan State University

Abstract

This problem shows how the key ignorability-of-treatment assumption used in estimating treatment effects can be violated when certain factors are included among the covariates. The case considered is when there are J + 1 treatment levels, treatment is randomized with respect to potential outcomes, but the distribution of included covariates differs across treatment levels.

Type
NOTES AND PROBLEMS
Copyright
© 2005 Cambridge University Press

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References

REFERENCES

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Wooldridge, J.M. (2002) Econometric Analysis of Cross Section and Panel Data. MIT Press.