What is the effect of studying economics rather than sociology on the salaries of university graduates?
Consider the following three causal questions:
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Get Help Now!- Many firms, particularly in southern European countries, are small, and owned and run by families. Are family owned firms growing more slowly than firms with a dispersed ownership?
- What is the effect of studying economics rather than sociology on the salaries of university graduates?
- What is the effect of mortgage interest rates on the number of new housing starts? For each of these questions answer the following:
- (a) What is the outcome variable and what is the treatment?
- (b) DeÖne the counterfactual outcomes Y0i and Y1i.
- (c) What plausible causal channel(s) runs directly from the treatment to the outcome?
- (d) What are possible sources of selection bias in the raw comparison of outcomes by treatment status? Which way would you expect the bias to go and why?
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