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Mathematics, 21.08.2020 22:01 danibe98r

Consider the following causal model y bx + v; x cy + u; where b 6 = 0; c 6 = 0 and bc 6 = 1: Suppose that the values of (u; v) are generated from (U; V ) s N 0; uu uv uv vv : We do not observe (U; V ) but we could observe the equilibrium solution (X, Y ). (a) Consider the special case with uu = 0 but vv 6 = 0 so that the model becomes

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Consider the following causal model y bx + v; x cy + u; where b 6 = 0; c 6 = 0 and bc 6 = 1: Suppose...
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