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Estimating Functionals of the Joint Distribution of Potential Outcomes with Optimal Transport

Daniel Ober-Reynolds

arXiv 15 Nov 2023 · Econometrics

arXiv:2311.09435 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Many causal parameters depend on a moment of the joint distribution of potential outcomes. Such parameters are especially relevant in policy evaluation settings, where noncompliance is common and accommodated through the model of Imbens & Angrist (1994). This paper shows that the sharp identified set for these parameters is an interval with endpoints characterized by the value of optimal transport problems. Sample analogue estimators are proposed based on the dual problem of optimal transport. These estimators are root-n consistent and converge in distribution under mild assumptions. Inference procedures based on the bootstrap are straightforward and computationally convenient. The ideas and estimators are demonstrated in an application revisiting the National Supported Work Demonstration job training program. I find suggestive evidence that workers who would see below average earnings without treatment tend to see above average benefits from treatment.

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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
1Abadie, A (2003) Semiparametric instrumental variable estimation of treatment response models0.87452100%
2Imbens, G. W., & Angrist, J. D (1994) Identification and estimation of local average treatment effects0.84333100%
3Fan, Y., & Park, S. S (2010) Sharp bounds on the distribution of treatment effects and their statistical inference0.64422100%
4Firpo, S., & Ridder, G (2019) Partial identification of the treatment effect distribution and its functionals0.64422100%
5Villani, C (2009) Optimal transport: old and new\/, vol. 3380.5506317%
6Staudt, T., Hundrieser, S., & Munk, A (2022) On the uniqueness of kantorovich potentials0.5113233%
7Heckman, J. J., Smith, J., & Clements, N (1997) Making the most out of programme evaluations and social experiments: Accounting for heterogeneity in programme impacts0.51121100%
8Ji, W., Lei, L., & Spector, A (2023) Model-agnostic covariate-assisted inference on partially identified causal effects0.51121100%
9Allcott, H., Braghieri, L., Eichmeyer, S., & Gentzkow, M (2020) The welfare effects of social media0.40511100%
10Callaway, B (2021) Bounds on distributional treatment effect parameters using panel data with an application on job displacement0.40511100%

Showing the top 10 of 39 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
1Generalized Optimal Transport0.94163
2Model-Agnostic Covariate-Assisted Inference on Partially Identified Causal Effects0.40511
3An econometrician's guide to optimal transport0.40511
4Partial Identification of Policy-Relevant Treatment Effects with Instrumental Variables via Optimal Transport0.40511