0
votes
2answers
423 views

Do we need Overlap/Common Support in case of a parametric regression?

If I want to make a causal statement based on selection on observables. One typically assumes "Common Support" (/"Overlap") - which means that for any value of the confounding variables X a unit i can ...
4
votes
1answer
123 views

Why arrange variables by causality in bivariate regression?

Suppose we have variables $(X,Y)$ and we have theory tell us that $X$ $\overset{\text{cause}}{\implies} Y$. Perhaps they're time-series variables and it would be common to see something like this: ...
1
vote
2answers
307 views

How do I estimate a differences in differences model when the dependent variable has many zeros?

Is there any way to run an OLS difference in differences model when the dependent variable (investment) has lots of observations which are truly zero? I donĀ“t know how to add clarifications. My ...
1
vote
3answers
126 views

Whats on the causal path?

I have an experiment that perturbs variable x and causes a change in variable z. There is a concurrent change in variable y. How can I determine whether variable y is on the causal path between x and ...