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Table Of Contents
Causal Inference with Bayesian Networks
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This chapter examines the National Supported Work (NSW) Demonstration, an experimental program that was designed to assess the impact of subsidized and transitional work experience on the lives of disadvantaged individuals. The data of this experiment was first analyzed by Lalonde, so it is often referred to as the LaLonde dataset. We look at the LaLonde dataset in this chapter and discuss different approaches to estimate the causal effect. First, we try standardization using a linear regression model to control the confounders and estimate the causal effect. Next, we calculate the propensity scores to assess the extent of overlap between the distribution of the propensity scores in the treatment and control groups. The causal effect will then be calculated using the method of inverse probability of treatment weighting (IPTW). Finally, we use the method of propensity score matching to calculate the causal effect. All these methods are implemented...