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The Role of the Propensity Score in Fixed Effect Models / Dmitry Arkhangelsky, Guido Imbens.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Arkhangelsky, Dmitry.
Contributor:
National Bureau of Economic Research.
Imbens, Guido.
Series:
Working Paper Series (National Bureau of Economic Research) no. w24814.
NBER working paper series no. w24814
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2018.
Summary:
We develop a new approach for estimating average treatment effects in the observational studies with unobserved cluster-level heterogeneity. The previous approach relied heavily on linear fixed effect specifications that severely limit the heterogeneity between clusters. These methods imply that linearly adjusting for differences between clusters in average covariate values addresses all concerns with cross-cluster comparisons. Instead, we consider an exponential family structure on the within-cluster distribution of covariates and treatments that implies that a low-dimensional sufficient statistic can summarize the empirical distribution, where this sufficient statistic may include functions of the data beyond average covariate values. Then we use modern causal inference methods to construct flexible and robust estimators.
Notes:
Print version record
July 2018.

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