Question

Question 3 (33 pts.) ichael is a health economics student interested in estimating the effect of health insurance coverage D, on the number of doctor visits n by estimating the population regression function (PRF) Y- + B2Di+ u by using the sample reported in Table 2. Enrollment in a health insurance plan is voluntary. nok Table 2 7 72 Michael has heard that observational studies produce blased results, while randomized experiments deliver the causal effect if an exhaustive set of samples are produced. He conducts a set of experiments, which are accurately reported in Table 3. However, Michael's grasp of the analysis of randomized experiments is somewhat shaky and he needs assistance in answering a set of questions. Table 3 t iirdinaqu Treatment group(TLI)一1controlgroup (TL.O) Sample 1 0 Sample 2 Sample 4 Sample 5 Sample 6 a) (2 pts) Michael would like to use his experimental results in Table 3 to decompose Table 2 into the causal effest and the selection bias, List the individuals and the samples in Table 3 that must be used for the computation of the causal effect in Table 2. with ind pdus with ut sindivi ouals u.los Indinsuok 2 in nie ent in hcgsh insusance with indirial 3 withur Som

Answer 1

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