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A Convexified Matching Approach to Imputation and Individualized Inference

YoonHaeng Hur, Tengyuan Liang

arXiv 7 Jul 2024 · Econometrics

arXiv:2407.05372 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We introduce a new convexified matching method for missing value imputation and individualized inference inspired by computational optimal transport. Our method integrates favorable features from mainstream imputation approaches: optimal matching, regression imputation, and synthetic control. We impute counterfactual outcomes based on convex combinations of observed outcomes, defined based on an optimal coupling between the treated and control data sets. The optimal coupling problem is considered a convex relaxation to the combinatorial optimal matching problem. We estimate granular-level individual treatment effects while maintaining a desirable aggregate-level summary by properly constraining the coupling. We construct transparent, individual confidence intervals for the estimated counterfactual outcomes. We devise fast iterative entropic-regularized algorithms to solve the optimal coupling problem that scales favorably when the number of units to match is large. Entropic regularization plays a crucial role in both inference and computation; it helps control the width of the individual confidence intervals and design fast optimization algorithms.

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43
references
71
in-text mentions
43
distinct cited
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main-text words

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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
1Sinkhorn, Richard (1967) Diagonal equivalence to matrices with prescribed row and column sums1.00053100%
2Cuturi, Marco (2013) Sinkhorn distances: lightspeed computation of optimal transport0.92843100%
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4LaLonde, Robert J (1986) Evaluating the econometric evaluations of training programs with experimental data0.81142100%
5Rosenbaum, Paul R, Rubin, Donald B (1983) The central role of the propensity score in observational studies for causal effects0.73732100%
6Villani, Cédric (2003) Topics in Optimal Transportation0.64422100%
7Dehejia, Rajeev H, Wahba, Sadek (1999) Causal effects in nonexperimental studies: Reevaluating the evaluation of training programs0.58531100%
8Hirano, Keisuke, Imbens, Guido W, Ridder, Geert (2003) Efficient estimation of average treatment effects using the estimated propensity score0.58531100%
9Rosenbaum, Paul R (1987) Model-based direct adjustment0.58531100%
10Farrell, Max H (2015) Robust inference on average treatment effects with possibly more covariates than observations0.51121100%

Showing the top 10 of 43 scored citations.