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Violating Ignorability of Treatment by Controlling for Too Many Factors
Jeffrey M. Wooldridge
Vol. 21, No. 5 (Oct., 2005), pp. 1026-1028
Published by: Cambridge University Press
Stable URL: http://www.jstor.org/stable/3533523
Page Count: 3
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This problem shows how the key ignorability-of-treatment assumption used in estimating treatment effects can be violated when certain factors are included among the covariates. The case considered is when there are J + 1 treatment levels, treatment is randomized with respect to potential outcomes, but the distribution of included covariates differs across treatment levels.
Econometric Theory © 2005 Cambridge University Press