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VIOLATING IGNORABILITY OF TREATMENT BY CONTROLLING FOR TOO MANY FACTORS

Jeffrey M. Wooldridge

Econometric Theory, 2005, vol. 21, issue 05, pages 1026-1028

Abstract: 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.

Date: 2005

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