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Linear estimation of global average treatment effects

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  • Stefan Faridani
  • Paul Niehaus

Abstract

We study estimation of and inference for the average causal effect of treating every member of a population, as opposed to none, using an experiment that treats only some. Considering settings where spillovers can occur between any pair of units and decay slowly with distance, we derive the minimax rate over all linear estimators and experimental designs, which increases with the spatial rate of spillover decay. This rate of convergence can be achieved using an inverse probability weighting estimator when randomization clusters are large, but not otherwise. If the causal model is linear, however, an OLS-based estimator converges faster than IPW when clusters are small and is consistent even under unit-level randomization. We provide methods for radius selection and inference and apply these to the cash transfer experiment studied by Egger et al. (2022), obtaining a 22% larger estimated effect on consumption.

Suggested Citation

  • Stefan Faridani & Paul Niehaus, 2022. "Linear estimation of global average treatment effects," Papers 2209.14181, arXiv.org, revised Jan 2026.
  • Handle: RePEc:arx:papers:2209.14181
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    References listed on IDEAS

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    3. Edward Miguel & Michael Kremer, 2004. "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities," Econometrica, Econometric Society, vol. 72(1), pages 159-217, January.
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    6. Lee, Lung-fei, 2007. "GMM and 2SLS estimation of mixed regressive, spatial autoregressive models," Journal of Econometrics, Elsevier, vol. 137(2), pages 489-514, April.
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    Cited by:

    1. Chaurey, Ritam & Nayyar, Guarav & Sharma, Siddharth & Verhoogen, Eric, 2025. "Social Learning among Urban Manufacturing Firms: Energy-Efficient Motors in Bangladesh," IZA Discussion Papers 18183, Institute of Labor Economics (IZA).
    2. Tadao Hoshino, 2025. "Evaluating Policy Effects under Network Interference without Network Information: A Transfer Learning Approach," Papers 2510.14415, arXiv.org.

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