Question

Your uncle sends you a message over Twitter with a link to a medical study. The study compares older adults who report drinking red wine in moderation to older adults who report abstaining from alcohol. Those who drink red wine in moderation are less likely to have hypertension. Your uncle concludes that he is better off drinking red wine for the health benefits (a) What is the causal relationship your uncle is trying to uncover and what is the counterfactual of interest? (b) What are the types of omitted variables we might worry about in interpreting the study he cites? Recall the two criteria for an omitted variable to be problematic: that it is correlated with the “treatment” (red wine) and has an effect on the outcome (health). (c) Suppose that wine drinkers are more likely to survive to old age than non-drinkers. Would this create a selection bias? How would this affect your interpretation of the evidence?

Answer 1

Answer:

keep smiling and always be happy

Answer 2

Answer:

Here are the answers to the questions. The casual relationship your uncle is trying to uncover is between him and drinking red wine. He is covering his habit of drinking more wine. The counterfactual is that drinking red wine can prevent hypertension. Drinking in any condition has been scientifically proven to be harmful. Your uncle is only providing excuses for his habit. No study can link what is detrimental to the reason for having a better life.