Metrics-simulation

This repository contains code and knitted documents of simulations I worked on as part of Econ metrics classes at UO.

Description of DGPs

Positive selection into treatment

DGP: $y = f(x_{1}, x_{2}, T),$ and $Z = 1 + a_1x_1 + a_2x_2$ determines the probability each individual gets treated, such that $$Pr[T=1] = \frac{1}{1+e^{-Z}}~.$$

Difference in Population Variance of Control and Treatment Group

DGP: $Y_C \sim \mathcal{N}(0, \mu_C); Y_T \sim \mathcal{N}(1, \mu_T); \mu_T > \mu_C$, and $y = f(T)$