Double Debiased Machine Learning (part 2)

To better understand the source of the bias, in the first part of this post, we have explored the example of a firm that is interested in testing the effectiveness of an ad campaign. The firm has information on its current ad spending and on the level of sales. The problem arises because the firm is uncertain on whether it should condition its analysis on the level of past sales. I import the data generating process dgp_pretest() from src.dgp and some plotting functions and libraries from src.utils. We have data on 1000 different markets, for which we observe current sales, the amount spent in advertisement and past sales.