Potential Outcome Framework
There are at least three different school of thoughts regarding causality: 1) granger causality; 2) Rubin’s potential outcome framework and 3) Pearl’s causality. Each of these thoughts have their own pros and cons. I will quickly discuss about the Rubin’s potential outcome framework and show the fundamental problem of causal inference.
For an example, say a researcher wants to study impact of certain treatment (say performance enhancing drug say \(T\)) on some outcomes (say capacity to solve riddle quizzes say \(Y\)).