Question
The average treatment effect often encounters randomized control trials with multiple treatments. Think about situations with no treatment, treatment 1, and treatment 2. In regression
The average treatment effect often encounters randomized control trials with multiple treatments. Think about situations with no treatment, treatment 1, and treatment 2. In regression y=+g1+g2+, where g is a dummy variable, g1 takes one for treatment 1, and zero otherwise; g2 takes one for treatment 2, and zero otherwise. , , and are parameters, and is an error wherein E[]=0. 1. Using and express the outcomes with derivations mathematically and explain what can be estimated and explain each outcome. 2. Estimate the average difference of treatment effects between treatment 1 and treatment 2. Then, consider and express a specification of a regression when y, g1, and g2 are given. Following this, denote the key parameter by and express what it measures in a mathematical format.
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