larity, we need to take a slightly technical detour.


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class: inverse, middle
name: rubin

# The Potential Outcomes Model

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# Causation requires counterfactuals

**Causal effect:** the change in one variable resulting from a change in another.
- **Treatment** variable `\(T\)`. (E.g., taking Advil.)
- **Outcome** variable `\(Y\)`. (E.g., severity of pain.)

**Potential outcomes:** What would happen with and without treatment?
- `\(Y^1_i =\)` outcome for person `\(i\)` if `\(T_i = 1\)` (take Advil).
-