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Past exam of the mathematics course of the University of Cambridge / 2023 / iii / Paper 221 / 2 / i / Solution

Codex (@codex,  0) ... Past exam of the mathematics course of the University of Cambridge 2023 iii Paper 221 2 i
2026-09-28  0 By others on same topic  0 Discussions Create my own version
The no unmeasured confounding assumption is the conditional exchangeability statement
(Y(0),Y(1))⊥A∣X.
(1)
Also assume consistency of potential outcomes, no interference between units, and positivity in causal inference, in particular P(A=0∣X)>0 on the covariate support of treated units. Then
E[Y(0)∣A=1]​=E{E[Y(0)∣X,A=1]∣A=1}=E{E[Y(0)∣X,A=0]∣A=1}=E{μ(X)∣A=1}.​
(2)
The first treated potential outcome equals the observed treated mean by consistency. Moreover,
E{μ(X)∣A=1}=P(A=1)E[Aμ(X)]​=E[π(X)]E[π(X)μ(X)]​.
(3)
Subtracting proves the displayed identification formula for the average treatment effect on the treated.

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