Heterogeneous Treatment Effects in the Presence of Self-Selection: A Propensity Score Perspective.

Sociological Methodology
Xiang Zhou, Yu Xie

Abstract

An essential feature common to all empirical social research is variability across units of analysis. Individuals differ not only in background characteristics, but also in how they respond to a particular treatment, intervention, or stimulation. Moreover, individuals may self-select into treatment on the basis of their anticipated treatment effects. To study heterogeneous treatment effects in the presence of self-selection, Heckman and Vytlacil (1999, 2001a, 2005, 2007b) have developed a structural approach that builds on the marginal treatment effect (MTE). In this paper, we extend the MTE-based approach through a redefinition of MTE. Specifically, we redefine MTE as the expected treatment effect conditional on the propensity score (rather than all observed covariates) as well as a latent variable representing unobserved resistance to treatment. As with the original MTE, the new MTE can also be used as a building block for evaluating standard causal estimands. However, the weights associated with the new MTE are simpler, more intuitive, and easier to compute. Moreover, the new MTE is a bivariate function, and thus is easier to visualize than the original MTE. Finally, the redefined MTE immediately reveals treatment effect het...Continue Reading

References

Apr 14, 1999·Proceedings of the National Academy of Sciences of the United States of America·J J Heckman, E J Vytlacil
Aug 24, 2000·Epidemiology·J M RobinsB Brumback
Jul 12, 2011·Journal of Economic Literature·James J Heckman
Mar 14, 2013·Sociological Methodology·Yu XieBen Jann
Mar 27, 2013·Proceedings of the National Academy of Sciences of the United States of America·Yu Xie
Apr 1, 2001·Journal of the Royal Statistical Society. Series A, (Statistics in Society)·Elizabeth A StuartPhilip J Leaf
Oct 23, 2018·The Journal of Political Economy·James J HeckmanGregory Veramendi

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