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Endogenous Stratification in Randomized Experiments

Author

Listed:
  • Alberto Abadie

    (MIT)

  • Matthew M. Chingos

    (Urban Institute)

  • Martin R. West

    (Harvard University)

Abstract

Policymakers are often interested in estimating how policy interventions affect the outcomes of those most in need of help. This concern has motivated the practice of disaggregating experimental results by groups constructed on the basis of an index of baseline characteristics that predicts the values of individual outcomes without the treatment. This paper shows that substantial biases may arise in practice if the index is estimated by regressing the outcome variable on baseline characteristics for the full sample of experimental controls. We propose alternative methods that correct this bias and show that they behave well in realistic scenarios.

Suggested Citation

  • Alberto Abadie & Matthew M. Chingos & Martin R. West, 2018. "Endogenous Stratification in Randomized Experiments," The Review of Economics and Statistics, MIT Press, vol. 100(4), pages 567-580, October.
    • Handle: RePEc:tpr:restat:v:100:y:2018:i:4:p:567-580
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/10.1162/rest_a_00732
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    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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