Air Pollution Schlenker and Walker (2016) study the effect o…
Air Pollution Schlenker and Walker (2016) study the effect of air pollution on contemporaneous health. (a) Consider the correlation between the air pollution that someone is exposed to and their health. Name two reasons why this correlation may not be causal. (b) Describe the empirical strategy that Schlenker and Walker use to obtain causal estimates. If possible, use the language of IV. (c) Schlenker and Walker don’t simply rely on local congestion in California airports, but instead make use of congestion driven by delays in other states. Why is local congestion problematic for recovering causal effects, while congestion stemming from other states is not? In your answer, use the phrase “exclusion restriction”.