Simulating the outcome of an intervention is a central problem in many fields as this allows decision-makers to quantify the effect of any given strategy and, hence, to evaluate different schemes of actions. Simulation is particularly relevant in very large systems where the statistical model involves many variables that, possibly, interact with each other. In this case one usually has a large number of parameters whose interpretation becomes extremely difficult. Furthermore, in a real system, although one may have a unique target variable, there may be a number of variables which might, and often should, be logically considered predictors of the target outcome and, at the same time, responses of other variables of the system. An intervention taking place on a given variable, therefore, may affect the outcome either directly and indirectly though the way in which it affects other variables within the system. Graphical chain models are particularly helpful in depicting all of the paths through which an intervention may affect the final outcome. Furthermore, they identify all of the relevant conditional distributions and therefore they are particularly useful in driving the simulation process. Focussing on binary variables, we propose a method to simulate the effect of an intervention. Our approach, however, can be easily extended to continuous and mixed responses variables. We apply the proposed methodology to assess the effect that a policy intervention may have on poorer health in early adulthood using prospective data provided by the 1970 British Birth Cohort Study (BCS70).
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Paper provided by Università degli Studi di Milano-Bicocca, Dipartimento di Statistica in its series Working Papers with number
20080301.
Find related papers by JEL classification: C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports: