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Efficient Covariate Balancing for the Local Average Treatment Effect

This article develops an empirical balancing approach for the estimation of treatment effects under two-sided noncompliance using a binary instrumental variable. The method weighs both treatment and outcome information with inverse probabilities to impose exact finite sample balance across instrument level groups. It is free of functional form assumptions on the outcome or the treatment selection step. By tailoring the loss function for the instrument propensity scores, the resulting treatment effect estimates are automatically weight normalized and exhibit both low bias and reduced variance in finite samples compared to conventional inverse probability weighting methods. We provide conditions for asymptotic normality and semiparametric efficiency and demonstrate how to use additional information about the treatment selection step for bias reduction in finite samples. A doubly robust extension is proposed as well. Monte Carlo simulations suggest that the theoretical advantages translate well to finite samples. The method is illustrated in an empirical example.

Ketersediaan

Informasi Detail

Judul Seri

JOURNAL OF BUSINESS AND ECONOMIC STATISTICS; Vol.40 No.4 October 2022

No. Panggil

-

Penerbit

: .,

Deskripsi Fisik

p. 1569-1582

Bahasa

English

ISBN/ISSN

-

Klasifikasi

NONE

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

-

Subjek

INVERSE PROBABILITY WEIGHTING
TREATMENT EFFECT
INSTRUMENTAL VARIABLE

Info Detail Spesifik

https://doi.org/10.1080/07350015.2021.1946067

Pernyataan Tanggungjawab

Phillip Heiler

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