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Causal inference In Dr. Xu's paper that studies the impact of mortgage deregulation on foreclosures, she used the deregulation as a natural experiment. Explain what

Causal inference

  1. In Dr. Xu's paper that studies the impact of mortgage deregulation on foreclosures, she used the deregulation as a natural experiment. Explain what is the control group and what is the control group. What makes the control group a valid control?
  2. Baum-Snow (2007) used 1947 highway plan as an IV for current high way to explain suburbanization. Explain the exclusion restriction in this case.
  3. What are the potential problems with using rain as an IV for income?
  4. Chen et al (2013) studies the impact of air pollution on life expectancy using the Huai Rui in China as a Regression Discontinuity design. Explain what's the driving variable? What discontinues at the Huai River? What institution made the discontinuity?

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