Power and sample size for observational studies of point exposure effects

Inverse probability of treatment weights (IPTWs) are commonly used to control for confounding when estimating causal effects of point exposures from observational data. When planning a study that will be analyzed with IPTWs, determining the required sample size for a given level of statistical power is challenging because of the effect of weighting on the variance of the estimated causal means. This paper considers the utility of the design effect to quantify the effect of weighting on the precision of causal estimates. The design effect is defined as the ratio of the variance of the causal mean estimator divided by the variance of a naïve estimator if, counter to fact, no confounding had been present and weights were not needed. A simple, closed‐form approximation of the design effect is derived that is outcome invariant and can be estimated during the study design phase. Once the design effect is approximated for each treatment group, sample size calculations are conducted as for a randomized trial, but with variances inflated by the design effects to account for weighting. Simulations demonstrate the accuracy of the design effect approximation, and practical considerations are discussed.