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Accurate Estimation of Small Effects: Illustration Through Air Pollution and Health

Author

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  • Vincent Bagilet

    (ENS de Lyon - École normale supérieure de Lyon - Université de Lyon)

Abstract

This paper identifies design parameters that can lead to inaccurate estimates of small effects. Low statistical power not only makes such effects difficult to detect but resulting significant estimates necessarily exaggerate true effect sizes on average. Through the literature on short-term health effects of air pollution, I explore this issue and its policy implications. Exaggeration can be substantial and power low even with large sample sizes. Real-data simulations highlight key additional drivers: the number of exogenous shocks, instrument strength, and outcome count. I propose a workflow to evaluate and mitigate exaggeration risk in non-experimental studies.

Suggested Citation

  • Vincent Bagilet, 2026. "Accurate Estimation of Small Effects: Illustration Through Air Pollution and Health," Working Papers hal-05624839, HAL.
  • Handle: RePEc:hal:wpaper:hal-05624839
    Note: View the original document on HAL open archive server: https://hal.science/hal-05624839v1
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