Suppose you are interested in the causal effect of a binary treatment variable
Suppose you are interested in the causal effect of a binary treatment variable, D;, on some outcomeY;. Our sample is of size n, where n1 units are treated, and no units are untreated. Note n= no + ท.We have shown that the coefficient estimate, B1, in a regression of Y; on a constant and D; can bewritten as:

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