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Identification and Estimation of Causal Mechanisms and Net Effects of a Treatment under Unconfoundedness

Author

Listed:
  • Flores, Carlos A.

    (California Polytechnic State University)

  • Flores-Lagunes, Alfonso

    (Syracuse University)

Abstract

An important goal when analyzing the causal effect of a treatment on an outcome is to understand the mechanisms through which the treatment causally works. We define a causal mechanism effect of a treatment and the causal effect net of that mechanism using the potential outcomes framework. These effects provide an intuitive decomposition of the total effect that is useful for policy purposes. We offer identification conditions based on an unconfoundedness assumption to estimate them, within a heterogeneous effect environment, and for the cases of a randomly assigned treatment and when selection into the treatment is based on observables. Two empirical applications illustrate the concepts and methods.

Suggested Citation

  • Flores, Carlos A. & Flores-Lagunes, Alfonso, 2009. "Identification and Estimation of Causal Mechanisms and Net Effects of a Treatment under Unconfoundedness," IZA Discussion Papers 4237, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4237
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    References listed on IDEAS

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    More about this item

    Keywords

    causal inference; causal mechanisms; post-treatment variables; principal stratification;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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