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Locally Robust Policy Learning: Inequality, Inequality of Opportunity and Intergenerational Mobility

Joël Terschuur

arXiv 19 Feb 2025 · Econometrics

arXiv:2502.13868 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Policy makers need to decide whether to treat or not to treat heterogeneous individuals. The optimal treatment choice depends on the welfare function that the policy maker has in mind and it is referred to as the policy learning problem. I study a general setting for policy learning with semiparametric Social Welfare Functions (SWFs) that can be estimated by locally robust/orthogonal moments based on U-statistics. This rich class of SWFs substantially expands the setting in Athey and Wager (2021) and accommodates a wider range of distributional preferences. Three main applications of the general theory motivate the paper: (i) Inequality aware SWFs, (ii) Inequality of Opportunity aware SWFs and (iii) Intergenerational Mobility SWFs. I use the Panel Study of Income Dynamics (PSID) to assess the effect of attending preschool on adult earnings and estimate optimal policy rules based on parental years of education and parental income.

Citation extraction

57
references
89
in-text mentions
57
distinct cited
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self-citations
9,013
main-text words

appendix boundary found by appendix_titled_section at “Appendix” · 47% of the source is main text. Read the extracted text to check this.

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
1Athey, S. and S. Wager (2021) Policy learning with observational data1.00095100%
2Escanciano, J. C. and J. R. Terschuur (2023) Machine Learning Inference on Inequality of Opportunity self0.8229456%
3Chernozhukov, V., J. C. Escanciano, H. Ichimura, W. K. Newey, and J.… (2022) Locally robust semiparametric estimation0.7373367%
4Hoeffding, W (1963) Probability Inequalities for Sums of Bounded Random Variables0.7373367%
5Zhou, Z., S. Athey, and S. Wager (2023) Offline multi-action policy learning: Generalization and optimization0.6444250%
6Chetty, R., N. Hendren, P. Kline, and E. Saez (2014) Where is the land of opportunity? The geography of intergenerational mobility in the United States0.64422100%
7Fort, M., A. Ichino, and G. Zanella (2020) Cognitive and noncognitive costs of day care at age 0–2 for children in advantaged families0.64422100%
8Kitagawa, T., M. Nybom, and J. Stuhler (2018) Measurement error and rank correlations, Tech0.64422100%
9Kitagawa, T. and A. Tetenov (2018) Who should be treated? empirical welfare maximization methods for treatment choice0.64422100%
10Leqi, L. and E. H. Kennedy (2021) Median optimal treatment regimes0.58531100%

Showing the top 10 of 57 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
12606.016590.51121
2Debiased Machine Learning U-Statistics0.40511
3On the Lower Confidence Band for the Optimal Welfare in Policy Learning0.40511
4Leave No One Undermined: Policy Targeting with Regret Aversion0.40511