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Treatment Effects: Suppose you are interested in whether reading to your kids makes them smarter. So you collect a sample of student test scores, and whether parents read to their kids. You regress the following regression model where

Student Achivement= B0 + B1 Readingi + B2Marital Statusi + B3Agei + B4Agei^2

Explain whether we can interpret the coefficient on hours reading to the kid as a causal parameter. Why or why not? If not, how what can we do in terms of experimental and non-experimental methods to isolate the effect of reading on student achievement?

Financial Management, Finance

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