AFRE WEEKLY DEPARTMENTAL SEMINAR:Marc Bellemare, University of Minnesota

March 12, 2020 3:30PM - 5:00PM

Justin S. Morill Hall of Agriculture, 446 W. Circle Drive, Room 75, East Lansing, MI 48824


The Paper of How: Estimating Treatment Effects Using the Front-Door Criterion

Marc F. Bellemarey, Jeffrey R. Bloem

Abstract

Modern empirical social science consists largely of attempts at answering questions of the form “What is the causal effect of X on Y?” As a result, social scientists rely on a number of empirical techniques aimed at disentangling causal relationships from mere correlations. One such technique is Judea Pearl’s (1995, 2000) front-door criterion, which relies for identification on the presence of a single, strictly exogenous mechanism on the causal path between the treatment and outcome. Social scientists in general—and economists in particular—have been resistant to the idea of adding the front-door criterion to the standard empirical toolkit, largely due to the difficulty posed by finding the required mechanism. To help overcome that resistance, we first explain how to use the front-door criterion in a regression context. We then present three empirical illustrations of the front-door criterion. Finally, and most importantly, we look at what happens when some of the assumptions underpinning the front-door criterion are violated.

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Tags: department of agricultural food and resource economics