Consider the treatment-outcome model (y=) (mathbf{x}^{prime} boldsymbol{beta}+alpha d+varepsilon), where (d) is a binary indicator variable taking the

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Consider the treatment-outcome model \(y=\) \(\mathbf{x}^{\prime} \boldsymbol{\beta}+\alpha d+\varepsilon\), where \(d\) is a binary indicator variable taking the value 1 if treatment is assigned randomly and 0 if treatment is not assigned (also randomly).

(a) Is randomized treatment a sufficient condition for identification of \(\alpha\) ?

(b) Is randomized treatment a sufficient condition for identification of \(\alpha\) and \(\beta\) ?

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Microeconometrics Methods And Applications

ISBN: 9780521848053

1st Edition

Authors: A.Colin Cameron, Pravin K. Trivedi

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