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1. Consider the following set of causal equations: x= 2 + 3z +8 y = -2 + x - 2 + ε x and z are observed variables while
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1. Consider the following set of causal equations: x= 2 + 3z +8 y = -2 + x - 2 + ε x and z are observed variables while
1. Consider the following set of causal equations: x= 2 + 3z +8 y = -2 + x - 2 + ε x and z are observed variables while 8 and ε are unobserved (“everything omitted from the model"). a. What is the (total) causal effect of x on y? b. What is the (total) causal effect of z on y?|| c. What is the DAG associated with this model? A 2. Now consider the equations Z = - 2 1 +2x+ 3 3 y = -2 + x - z+ Again, x and z are observed variables while y and ε are unobserved a. What is the (total) causal effect of x on y? b. What is the (total) causal effect of z on y? c. Explain in what way the first equation in this model is different from the first equation of the previous model
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