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02 - Randomised Experiments — Causal Inference for the Brave and True

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In the previous session, we saw why and how association is different from causation. We also saw what is required to make association be causation.

02 - Randomised Experiments # The Gold Standard # In the previous session, we saw why and how association is different from causation. We also saw what is required to make association be causation. \( E[Y|T=1] - E[Y|T=0] = \underbrace{E[Y_1 - Y_0|T=1]}_{ATT} + \underbrace{\{ E[Y_0|T=1] - E[Y_0|T=0] \}}_{BIAS} \) To recap, association becomes causation if there is no bias. There will be no bias if \(E[Y_0|T=0]=E[Y_0|T=1]\) . In words, association will be causation if the treated and control are equal or comparable, except for their treatment. Or, in more technical words, when the outcome of the

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