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Policy Learning with $α$-Expected Welfare

Yanqin Fan, Yuan Qi, Gaoqian Xu

arXiv 1 May 2025 · Econometrics

arXiv:2505.00256 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes an optimal policy that targets the average welfare of the worst-off $\alpha$-fraction of the post-treatment outcome distribution. We refer to this policy as the $\alpha$-Expected Welfare Maximization ($\alpha$-EWM) rule, where $\alpha \in (0,1]$ denotes the size of the subpopulation of interest. The $\alpha$-EWM rule interpolates between the expected welfare ($\alpha=1$) and the Rawlsian welfare ($\alpha\rightarrow 0$). For $\alpha\in (0,1)$, an $\alpha$-EWM rule can be interpreted as a distributionally robust EWM rule that allows the target population to have a different distribution than the study population. Using the dual formulation of our $\alpha$-expected welfare function, we propose a debiased estimator for the optimal policy and establish its asymptotic upper regret bounds. In addition, we develop asymptotically valid inference for the optimal welfare based on the proposed debiased estimator. We examine the finite sample performance of the debiased estimator and inference via both real and synthetic data.

Citation extraction

74
references
225
in-text mentions
74
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
1Kitagawa, T. and Tetenov, A (2021) Equality-minded treatment choice1.000145100%
2Luedtke, A. R. and van der Laan, M. J (2016) Statistical inference for the mean outcome under a possibly non-unique optimal treatment strategy1.00063100%
3Wang, L., Zhou, Y., Song, R., and Sherwood, B (2018) Quantile-optimal treatment regimes1.00063100%
4Kitagawa, T. and Tetenov, A (2018) Who should be treated? empirical welfare maximization methods for treatment choice0.97831994%
5Athey, S. and Wager, S (2021) Policy learning with observational data0.95229986%
6Luedtke, A. and Chambaz, A (2020) Performance guarantees for policy learning0.8947471%
7Athey, S., Imbens, G. W., Metzger, J., and Munro, E (2024) Using wasserstein generative adversarial networks for the design of monte carlo simulations0.8746367%
8Rai, Y (2018) Statistical inference for treatment assignment policies0.7375340%
9Bloom, H. S., Orr, L. L., Bell, S. H., Cave, G., Doolittle, F., Lin,… (1997) The benefits and costs of jtpa title ii-a programs: Key findings from the national job training partnership act study0.7373367%
10Qi, Z., Pang, J.-S., and Liu, Y (2023) On robustness of individualized decision rules0.69381100%

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
1Higher-Order Debiased Estimators for General Treatment Models0.64422
2Policy Learning under Unobserved Confounding: A Robust and Efficient Approach0.40511