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Minimax regret treatment choice with finite samples

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Author Info
Stoye, Jörg

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Abstract

This paper applies the minimax regret criterion to choice between two treatments conditional on observation of a finite sample. The analysis is based on exact small sample regret and does not use asymptotic approximations or finite-sample bounds. Core results are: (i) Minimax regret treatment rules are well approximated by empirical success rules in many cases, but differ from them significantly-both in terms of how the rules look and in terms of maximal regret incurred-for small sample sizes and certain sample designs. (ii) Absent prior cross-covariate restrictions on treatment outcomes, they prescribe inference that is completely separate across covariates, leading to no-data rules as the support of a covariate grows. I conclude by offering an assessment of these results.

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Publisher Info
Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 151 (2009)
Issue (Month): 1 (July)
Pages: 70-81
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Handle: RePEc:eee:econom:v:151:y:2009:i:1:p:70-81

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Web page: http://www.elsevier.com/locate/jeconom

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Related research
Keywords: Finite sample theory Statistical decision theory Minimax regret Treatment response Treatment choice;

Cited by:
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  1. J. Stoye, 2009. "Charles F. Manski, Identification for Prediction and Decision (Harvard University Press 2007)," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 857-862. [Downloadable!]
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This page was last updated on 2009-12-9.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.