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Learning about Treatment Effects with Prior Studies: A Bayesian Model Averaging Approach

Frederico Finan, Demian Pouzo

arXiv 14 Jan 2026 · Econometrics

arXiv:2601.09888 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We establish concentration rates for estimation of treatment effects in experiments that incorporate prior sources of information -- such as past pilots, related studies, or expert assessments -- whose external validity is uncertain. Each source is modeled as a Gaussian prior with its own mean and precision, and sources are combined using Bayesian model averaging (BMA), allowing data from the new experiment to update posterior weights. To capture empirically relevant settings in which prior studies may be as informative as the current experiment, we introduce a nonstandard asymptotic framework in which prior precisions grow with the experiment's sample size. In this regime, posterior weights are governed by an external-validity index that depends jointly on a source's bias and information content: biased sources are exponentially downweighted, while unbiased sources dominate. When at least one source is unbiased, our procedure concentrates on the unbiased set and achieves faster convergence than relying on new data alone. When all sources are biased, including a deliberately conservative (diffuse) prior guarantees robustness and recovers the standard convergence rate.

Citation extraction

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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
1Wasserman, Larry (2000) Bayesian Model Selection and Model Averaging0.58531100%
2Kass, Robert E. and Raftery, Adrian E (1995) Bayes Factors0.51121100%
3Steel, Mark F. J (2020) Model Averaging and Its Use in Economics0.51121100%
4Fernandez, Carmen and Ley, Eduardo and Steel, Mark (2001) Model uncertainty in cross-country growth regressions0.40511100%
5Fernández, Carmen and Ley, Eduardo and Steel, Mark F. J (2001) Model Uncertainty in Cross-Country Growth Regressions0.40511100%
6Jennifer A. Hoeting and David Madigan and Adrian E. Raftery and Chri… (1999) Bayesian model averaging: a tutorial (with comments by M. Clyde, David Draper and E. I. George, and a rejoinder by the authors0.40511100%
7Valen E. Johnson and David Rossell (2012) Bayesian Model Selection in High-Dimensional Settings0.40511100%
8Kaufmann, Emilie and Korda, Nathaniel and Munos, Rémi (2012) Thompson Sampling: An Asymptotically Optimal Finite-Time Analysis0.40511100%
9Cheng Li and Wenxin Jiang (2016) On oracle property and asymptotic validity of Bayesian generalized method of moments0.40511100%
10Liang, Feng and Paulo, Rui and Molina, Germán and Clyde, Merlise A.… (2008) Mixtures of $g$ Priors for Bayesian Variable Selection0.40511100%

Showing the top 10 of 18 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
10.5 in Using Prior Studies to Design Experiments: An Empirical Bayes Approach0.40511
2Quasi-Bayesian Hierarchical Models0.40511