Causal Inference, Machine Learning, Editors Pick, Bcn Causal Algo, Thoughts And Theory.
theorem states that, given the linear model Y=β₀+β₁D+β₂Z+U, the two following approaches for estimating β₁ yield the same result: Linear regression of Y on D and Z, using OLS. Three-step procedure: 1) regress D on Z; 2) regress Y on Z; 3) regress the residuals from 2 on the residuals from 1 for