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Specification Tests for the Propensity Score

Pedro H. C. Sant'Anna, Xiaojun Song

arXiv 18 Nov 2016 · Statistics — Methodology · publishedJournal of Econometrics (2019) · 33 citations (OpenAlex)

arXiv:1611.06217 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes new nonparametric diagnostic tools to assess the asymptotic validity of different treatment effects estimators that rely on the correct specification of the propensity score. We derive a particular restriction relating the propensity score distribution of treated and control groups, and develop specification tests based upon it. The resulting tests do not suffer from the "curse of dimensionality" when the vector of covariates is high-dimensional, are fully data-driven, do not require tuning parameters such as bandwidths, and are able to detect a broad class of local alternatives converging to the null at the parametric rate $n^{-1/2}$, with $n$ the sample size. We show that the use of an orthogonal projection on the tangent space of nuisance parameters facilitates the simulation of critical values by means of a multiplier bootstrap procedure, and can lead to power gains. The finite sample performance of the tests is examined by means of a Monte Carlo experiment and an empirical application. Open-source software is available for implementing the proposed tests.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Shaikh, Simonsen, Vytlacil \ Yildiz (2009) A specification test for the propensity score using its distribution conditional on participation0.96832691%
2Millimet \ Tchernis (2009) On the Specification of Propensity Scores, With Applications to the Analysis of Trade Policies0.874102100%
3Escanciano \ Goh (2014) Specification analysis of linear quantile models0.81142100%
4Escanciano (2009) Simple bootstrap tests for conditional moment restrictions,, Technical report, Indiana University0.73732100%
5Heckman, Ichimura, Smith \ Todd (1998) Characterizing selection bias using experimental data0.73732100%
6Rosenbaum \ Rubin (1983) The central role of the propensity score in observational studies for causal effects0.73732100%
7van der Vaart \ Wellner (1996) Weak Convergence and Empirical Processes, New York: Springer0.6444250%
8Frankel \ Rose (2005) Is Trade Good or Bad for the Environment? Sorting Out the Causality0.64441100%
9Abadie \ Imbens (2016) Matching on the estimated propensity score0.64422100%
10Bierens \ Ploberger (1997) Asymptotic theory of integrated conditional moment tests0.64422100%

Showing the top 10 of 64 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Specification tests for generalized propensity scores using double projections0.81142
2A Consistent ICM-based $^2$ Specification Test0.73743
3Specification tests for regression models with measurement errors0.73732
4Covariate Distribution Balance via Propensity Scores0.64422
50.5mm Model Checks in a Kernel Ridge Regression Framework 0.25mm0.64422
6A Projection Approach to Nonparametric Significance and Conditional Independence Testing0.64422
70.5mm Finite-Sample Distortion in Kernel Specification Tests: A Perturbation Analysis of Empirical Directional Components 0.25mm0.51122
8Difference-in-Differences with Multiple Time Periods0.40511
9Testing Heteroskedasticity Under Measurement Error0.40511