flowchart LR A(IRA) --> B(Subsidies) B --> C(Investment) B --> D(Jobs) C --> D C --> E(Domestic Manufacturing) D --> E(Domestic Manufacturing)
February 11, 2025
flowchart LR A(IRA) --> B(Subsidies) B --> C(Investment) B --> D(Jobs) C --> D C --> E(Domestic Manufacturing) D --> E(Domestic Manufacturing)
Inputs:
Things that go into an activity; money, people, time, etc.
Activities:
Actions that convert inputs to outputs; things that the program does
Outputs:
Tangible goods and services produced by activities; you have control over these
Outcomes:
What happens when the target population uses the outputs; you don’t have control over these
Inputs → Activities → Outputs → Outcomes → Final outcomes
Source: Gertler et al. (2016)
flowchart LR A(Inputs) --> B(Activities) --> C(Outputs) --> D(Outcomes)
P is for “Produce”
C is for “Change”
Learn more: Logic Model: A Biginner’s Guide
Source: Andrew Wheiss
“The counterfactual is what would have happened—what the outcome (Y) would have been for a program participant—in the absence of the program (P).”
“Since we cannot directly observe the counterfactual, we must estimate it.”
Source: Gertler et al. (2016)
- has the same characteristics, on average, as the treatment group in the absence of the program;
- remains unaffected by the program; and
- would react to the program in the same way as the treatment group, if given the program.
Source: Gertler et al. (2016)
- Before-and-after comparisons (also known as pre-post or refl exive comparisons) compare the outcomes of the same group before and after participating in a program.
- Enrolled-and-nonenrolled (or self-selected) comparisons compare the outcomes of a group that chooses to participate in a program with those of a group that chooses not to participate.
Source: Gertler et al. (2016)
Real experiments could be
Directed: Each node has an arrow that points to another node
Acyclic: You can’t cycle back to a node (and arrows only have one direction)
Graph: It’s a graph
Source: Andrew Wheiss
Step 1: List variables
Step 2: Simplify
Step 3: Connect arrows
Step 4: Use logic and math to determine which nodes and arrows to measure
What is the causal effect of an additional year of education on earnings?
Source: Andrew Wheiss
A causal effect is identified if the association between treatment and outcome is propertly stripped and isolated.
Confounding: Common cause
Causation: Mediation
Collision: Endogeneity/Selection
Source: Andrew Wheiss
What’s the relations between money and win margin?
Money \(\rightarrow\) Win
Money \(\leftarrow\) Quality \(\rightarrow\) Win
Quality is a backdoor
Solution:
Find the part of campaign money that is explained by quality, remove it. This is the residual part of money.
Find the part of win margin that is explained by quality, remove it. This is the residual part of win margin.
Find the relationship between the residual part of money and residual part of win margin. This is the causal effect.
Source: Andrew Wheiss
Should you control job connections?
Source: Andrew Wheiss
Should you control job connections?
Source: Andrew Wheiss
Do programming skills reduce social skills?
Hired by a tech company inadvertently connected the two.
Source: Andrew Wheiss
Height is unrelated to basketball skill among NBA players
Colliders can create fake causal effects
Colliders can hide real causal effects
Source: Andrew Wheiss
Source: Andrew Wheiss