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Optimality of Matched-Pair Designs in Randomized Controlled Trials

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  • Yuehao Bai

Abstract

In randomized controlled trials (RCTs), treatment is often assigned by stratified randomization. I show that among all stratified randomization schemes which treat all units with probability one half, a certain matched-pair design achieves the maximum statistical precision for estimating the average treatment effect (ATE). In an important special case, the optimal design pairs units according to the baseline outcome. In a simulation study based on datasets from 10 RCTs, this design lowers the standard error for the estimator of the ATE by 10% on average, and by up to 34%, relative to the original designs.

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  • Yuehao Bai, 2022. "Optimality of Matched-Pair Designs in Randomized Controlled Trials," Papers 2206.07845, arXiv.org.
    • Handle: RePEc:arx:papers:2206.07845
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    Cited by:

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    2. Jizhou Liu, 2023. "Inference for Two-stage Experiments under Covariate-Adaptive Randomization," Papers 2301.09016, arXiv.org, revised Oct 2023.
    3. Yuehao Bai & Meng Hsuan Hsieh & Jizhou Liu & Max Tabord-Meehan, 2022. "Revisiting the Analysis of Matched-Pair and Stratified Experiments in the Presence of Attrition," Papers 2209.11840, arXiv.org, revised Oct 2023.
    4. Jinglong Zhao, 2023. "Adaptive Neyman Allocation," Papers 2309.08808, arXiv.org, revised Sep 2023.
    5. Yuehao Bai & Jizhou Liu & Azeem M. Shaikh & Max Tabord-Meehan, 2023. "On the Efficiency of Finely Stratified Experiments," Papers 2307.15181, arXiv.org, revised Feb 2024.
    6. Guillermo Cruces & Dario Tortarolo & Gonzalo Vazquez-Bare, 2022. "Design of two-stage experiments with an application to spillovers in tax compliance," IFS Working Papers W22/32, Institute for Fiscal Studies.
    7. Yuehao Bai & Jizhou Liu & Max Tabord-Meehan, 2022. "Inference for Matched Tuples and Fully Blocked Factorial Designs," Papers 2206.04157, arXiv.org, revised Nov 2023.
    8. Yuehao Bai & Jizhou Liu & Azeem M. Shaikh & Max Tabord-Meehan, 2022. "Inference in Cluster Randomized Trials with Matched Pairs," Papers 2211.14903, arXiv.org, revised May 2023.

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