chapter six

6 Direct & Indirect effects with linear models

 

This chapter covers

  • Calculating causal impacts when the treatment is a continuous variable using linear regression
  • Decomposing the impact of a variable into direct and indirect effects.
  • Propagating correlations through the graph
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Figure 6.1 Apply the adjustment formula
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6.1 Estimating causal effects with linear models

6.1.1 Simulating a pricing problem - a walkthrough

6.1.2 Direct and indirect effects

6.2 Understanding causal dynamics through linear models

6.2.1 The analogy of a gas flowing through pipes

6.2.2 How correlation flow through a graph

6.2.3 Calculating causation and correlation from the arrows' coefficients

6.2.4 Linear models and the do operator

6.3 Chapter Quiz

6.4 Summary

6.5 Appendix