[SOLVED] CS Econ 570: Assignment 1

Econ 570: Assignment 1
Due: 19 February 2021 at 2 pm Pacific Time
We have discussed the following causal inference methods in class
Randomized experiments
Estimation under unconfoundedness using matching and propensity score weighting Instrumental variables
Difference-in-differences
Synthetic control
Regression discontinuity
This assignment is about exploring how the estimators perform under different data gen- erating processes (DGPs). Specifically, pick two or three estimators and do the following for each estimator:
Generate data using two DGPs
1. DGP1 does not violate the assumptions under which the estimator works
2. DGP2 violates at least one of the assumptions
For each DGP, describe it and explain how it does/does not satisfy the requirements for identification of the parameters (and which parameters are you identifying?)
Also, give a real life example of a situation which might be consistent with this DGP Feel free (not required) to illustrate with a DAG
Run a Monte Carlo simulation. At each replication 1. Generate a random draw from the DGP
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2. Estimate the model 3. Save the estimates
Report summary statistics of parameter estimates
1. Bias 2. RMSE 3. Size
Comment on the results. Are the estimates from DGP1 and DGP2 as expected?
Turn in your code. The commentary can be in the form of a markup document or a separate pdf.
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