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Experimental Design for Policy Choice

Samuel D. Higbee

arXiv 10 Sep 2026 · Econometrics

arXiv:2609.10971 · PDF · Extracted main text

Abstract

We show how to optimally design experiments when the resulting data will be used to choose a welfare-maximizing policy subject to constraints. A decision maker seeks to maximize Bayes expected welfare by choosing a policy whose effects depend on an unknown finite-dimensional parameter. The decision maker has access to a first wave of experimental data with a fixed design but may choose the design of a second wave that will be collected before choosing the policy. The resulting experimental design--policy choice problem is a very high-dimensional dynamic program that is generally intractable in finite samples. We propose a tractable approximation based on the limit experiment and show it is asymptotically optimal using a new asymptotic representation theorem for adaptive experiments with continuous treatments. We apply the method to a conditional cash transfer experiment and demonstrate the potential for large gains from tailoring the experiment to the policy choice.

Citation extraction

44
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in-text mentions
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appendix boundary found by appendix_command · 44% 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
1Hirano, Keisuke and Porter, Jack R Asymptotic Representations for Sequential Decisions, Adaptive Experiments, and Batched Bandits0.9507386%
2Adusumilli, Karun Risk and Optimal Policies in Bandit Experiments0.84333100%
3Van der Vaart, Aad W Asymptotic Statistics0.7375260%
4Attanasio, Orazio P. and Meghir, Costas and Santiago, Ana Education Choices in Mexico: Using a Structural Model and a Randomized Experiment to Evaluate PROGRESA0.73732100%
5Hirano, Keisuke and Porter, Jack R Asymptotics for Statistical Treatment Rules0.73732100%
6Todd, Petra E and Wolpin, Kenneth I Assessing the Impact of a School Subsidy Program in Mexico: Using a Social Experiment to Validate a Dynamic Behavioral Model of…0.73732100%
7Adusumilli, Karun How to Sample and When to Stop Sampling: The Generalised Wald Problem and Minimax Policies0.64422100%
8Athey, Susan and Wager, Stefan Policy Learning With Observational Data0.64422100%
9Kitagawa, Toru and Tetenov, Aleksey Who Should Be Treated? Empirical Welfare Maximization Methods for Treatment Choice0.64422100%
10Athey, S. and Imbens, G.W The Econometrics of Randomized Experiments0.51121100%

Showing the top 10 of 44 scored citations.