JSM 2004 - Toronto

Abstract #300841

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Activity Number: 199
Type: Contributed
Date/Time: Tuesday, August 10, 2004 : 8:30 AM to 10:20 AM
Sponsor: Social Statistics Section
Abstract - #300841
Title: Causal Inference in Spatial Hierarchical Setting
Author(s): Natalya Verbitsky*+ and Stephen W. Raudenbush
Companies: University of Michigan and University of Michigan
Address: 439 West Hall, Dept. of Statistics, Ann Arbor, MI, 48109,
Keywords: causal inference ; potential outcomes ; spatial statistics ; hierarchical models ; violation of SUTVA ; social networks
Abstract:

Does drug A or drug B alleviate headache faster? Does community policing decrease the annual crime rate of a city? Causal questions arise in many facets of daily life. Rubin's causal framework is based on estimating the differences between individual's potential outcomes to treatment A and treatment B and on Cox's "no interference between units" assumption (Stable Unit Treatment Value, SUTVA). However, this assumption is no longer valid when causal questions arise in social networks or geographical settings, where the treatment received by one's neighbor may affect one's potential outcome. We propose an extension of Rubin's framework where the potential outcomes of any unit in the population depend of the treatment assignment of all units in the population. We define causal effects and discuss assumptions that make this framework tractable. Since the data are hierarchical in nature (e.g., individuals nested in neighborhoods) we propose a two-level hierarchical linear model with spatial dependence at level two.


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