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Estimation and Inference for Policy Relevant Treatment Effects

Yuya Sasaki, Takuya Ura

arXiv 29 May 2018 · Econometrics · publishedJournal of Econometrics (2021) · 2 citations (OpenAlex)

arXiv:1805.11503 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The policy relevant treatment effect (PRTE) measures the average effect of switching from a status-quo policy to a counterfactual policy. Estimation of the PRTE involves estimation of multiple preliminary parameters, including propensity scores, conditional expectation functions of the outcome and covariates given the propensity score, and marginal treatment effects. These preliminary estimators can affect the asymptotic distribution of the PRTE estimator in complicated and intractable manners. In this light, we propose an orthogonal score for double debiased estimation of the PRTE, whereby the asymptotic distribution of the PRTE estimator is obtained without any influence of preliminary parameter estimators as far as they satisfy mild requirements of convergence rates. To our knowledge, this paper is the first to develop limit distribution theories for inference about the PRTE.

Citation extraction

74
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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
1Carneiro, P. and S. Lee (2009) Estimating Distributions of Potential Outcomes Using Local Instrumental Variables with an Application to Changes in College Enro…1.000153100%
2Heckman, J. J. and E. Vytlacil (2005) Structural Equations, Treatment Effects, and Econometric Policy Evaluation1.00073100%
3Carneiro, P., M. Lokshin, and N. Umapathi (2017) Average and Marginal Returns to Upper Secondary Schooling in Indonesia0.94112483%
4Carneiro, P., J. J. Heckman, and E. Vytlacil (2010) Evaluating Marginal Policy Changes and the Average Effect of Treatment for Individuals at the Margin0.9416483%
5Heckman, J. J. and E. Vytlacil (2001) Policy-Relevant Treatment Effects0.87462100%
6Newey, W. K (1994) The asymptotic variance of semiparametric estimators0.81142100%
7Robinson, P. M (1988) Root-N-consistent semiparametric regression0.81142100%
8Heckman, J. J. and E. J. Vytlacil (1999) Local instrumental variables and latent variable models for identifying and bounding treatment effects0.69351100%
9Björklund, A. and R. Moffitt (1987) The Estimation of Wage Gains and Welfare Gains in Self-Selection Models0.64422100%
10Chernozhukov, V., D. Chetverikov, M. Demirer, E. Duflo, C. Hansen, W… (2018) a): Double/debiased machine learning for treatment and structural parameters0.64422100%

Showing the top 10 of 74 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
1Local Average and Marginal Treatment Effects with a Misclassified Treatment0.69351
2Policy Learning under Endogeneity Using Instrumental Variables0.64422
3Automatic Locally Robust GMM with Machine-Learning-Generated Regressors0.51121
4Debiased Machine Learning of Set-Identified Linear Models0.40511
5Regularized Orthogonal Machine Learning for Nonlinear Semiparametric Models0.40511
6Double Debiased Machine Learning Nonparametric Inference with Continuous Treatments0.40511
7Generalized Lee Bounds0.40511
8Identification and Estimation of Unconditional Policy Effects of an Endogenous Binary Treatment: An Unconditional MTE Approach0.40511
9Welfare Analysis via Marginal Treatment Effects0.40511
10Personalized Subsidy Rules0.40511