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How do you handle confounders in observational studies?

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Answer

  • (1) Include them in regression (X  in  E[Y    T,  X])(X\;\mathrm{in}\;E[Y\; \mid \;T, \;X]) if measured — assumes correct functional form.
  • (2) Matching / propensity score matching — trims to overlap region.
  • (3) Inverse probability weighting — reweight sample so treated and control look similar.
  • (4) Doubly robust: regression + IPW (consistent if either is correct).
  • (5) Instrumental variables — bypass unobserved confounders.
  • Unmeasured confounders are the fatal weakness — that's why RCTs are the gold standard.
Check yourself — multiple choice
  • Not needed
  • Regression / matching / IPW / doubly robust adjust for observed confounders; unmeasured confounders → IV or admit non-identifiability
  • Only IV
  • Random

Confounders: regression / matching / IPW / DR / IV; unmeasured → IV or RCT.

#causal-inference

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