Propensity score specification for optimal estimation of average treatment effect with binary response

2020 ◽  
Vol 29 (12) ◽  
pp. 3623-3640
Author(s):  
John A Craycroft ◽  
Jiapeng Huang ◽  
Maiying Kong

Propensity score methods are commonly used in statistical analyses of observational data to reduce the impact of confounding bias in estimations of average treatment effect. While the propensity score is defined as the conditional probability of a subject being in the treatment group given that subject’s covariates, the most precise estimation of average treatment effect results from specifying the propensity score as a function of true confounders and predictors only. This property has been demonstrated via simulation in multiple prior research articles. However, we have seen no theoretical explanation as to why this should be so. This paper provides that theoretical proof. Furthermore, this paper presents a method for performing the necessary variable selection by means of elastic net regression, and then estimating the propensity scores so as to obtain optimal estimates of average treatment effect. The proposed method is compared against two other recently introduced methods, outcome-adaptive lasso and covariate balancing propensity score. Extensive simulation analyses are employed to determine the circumstances under which each method appears most effective. We applied the proposed methods to examine the effect of pre-cardiac surgery coagulation indicator on mortality based on a linked dataset from a retrospective review of 1390 patient medical records at Jewish Hospital (Louisville, KY) with the Society of Thoracic Surgeons database.

2018 ◽  
Vol 11 (5) ◽  
pp. 149
Author(s):  
Mavis Boimah ◽  
Akwasi Mensah-Bonsu ◽  
Yaw Osei-Asare ◽  
Daniel B. Sarpong

Conservation Agriculture (CA) is promoted worldwide on the basis of its contribution to economic, social, and environmental sustainability of agricultural production. In Ghana, despite the increasing interest in the promotion of CA and its practices, its rate of adoption is still low, mainly due to the conflicting evidences regarding its effectiveness. This paper contributes to the numerous debates by examining the impact of CA practices on hired labour, rates of inorganic fertilizers applied by adopters, maize yield, and profit of adopters. Using a cross-sectional data, a multinomial endogenous switching regression (MESR) model was employed to compute the Average Treatment Effect (ATE) and Average Treatment Effect on Treated (ATET) for yield, hired labour, inorganic fertilizer rate, and profit of adopters of CA practices. The study reveals that CA practices impact positively on hired labour employed on the farm, but have a negative impact on profits of adopters. No impact whatsoever of adoption of CA practices is observed on maize yield and also inorganic fertilizer application rates. Technical assistance, and training of farmers on strategies that minimize costs of production must be intensified to raise profits of adopters.


2017 ◽  
Vol 44 (12) ◽  
pp. 1669-1682
Author(s):  
Oluwatosin Adejoke Oyedele ◽  
Kemisola O. Adenegan

Purpose African indigenous vegetables have high nutritive value which contains high levels of minerals. The current status of indigenous vegetable production in developing countries shows that these crops are “under-recognized” and “underutilized” with respect to nutritional value and opportunities for food security. The purpose of this paper is to examine the impact of the production of underutilized vegetables on the livelihood of farmers in South Western Nigeria. Design/methodology/approach The population for the study includes all the vegetable farmers in South Western Nigeria with a special focus on farmers’ groups formed by the NICANVEG project in Osun, Oyo, Ondo and Ekiti states. Descriptive statistics and propensity score matching (PSM) was used to analyze the objective. Findings Perceptions on individual household income reveal that the majority of participating respondents perceived higher production and harvesting density. This is due to the fact that harvesting is done by cutting the stems of the vegetables. The probability score shows that the dependent variables have an average effect of 44.6 percent on the probability of farmers participating in NICANVEG project. The PSM results reveal that average treatment effect on the treated is ₦269,254.87. Average treatment on the untreated is ₦11,990.63 while average treatment effect is ₦139,336.43. The total income of the participants from all the various livelihood strategies is increased by 29.73 percent because of their participation in the NICANVEG project. Originality/value This work has not been carried out by any other person before. This work will add to the existing knowledge on the impact of evaluation in agricultural economics.


2019 ◽  
Vol 52 (2) ◽  
pp. 187-200
Author(s):  
GUBHINDER KUNDHI ◽  
MARCEL VOIA

The estimated average treatment effect in observational studies is biased if the assumptions of ignorability and overlap are not satisfied. To deal with this potential problem when propensity score weights are used in the estimation of the treatment effects, in this paper we propose a bootstrap bias correction estimator for the average treatment effect (ATE) obtained with the inverse propensity score (BBC-IPS) estimator. We show in simulations that the BBC-IPC performs well when we have misspecifications of the propensity score (PS) due to: omitted variables (ignorability property may not be satisfied), overlap (imbalances in distribution between treatment and control groups) and confounding effects between observables and unobservables (endogeneity). Further refinements in bias reductions of the ATE estimates in smaller samples are attained by iterating the BBC-IPS estimator.


2020 ◽  
Vol 53 (2) ◽  
pp. 165-189
Author(s):  
XIAOTIAN GAO ◽  
XINXIN DONG ◽  
CHAERYON KANG KANG ◽  
ABDUS S. WAHED

The estimated average treatment effect in observational studies is biased if the assumptions of ignorability and overlap are not satisfied. To deal with this potential problem when propensity score weights are used in the estimation of the treatment effects, in this paper we propose a bootstrap bias correction estimator for the average treatment effect (ATE) obtained with the inverse propensity score (BBC-IPS) estimator. We show in simulations that the BBC-IPC performs well when we have misspecifications of the propensity score (PS) due to: omitted variables (ignorability property may not be satisfied), overlap (imbalances in distribution between treatment and control groups) and confounding effects between observables and unobservables (endogeneity). Further refinements in bias reductions of the ATE estimates in smaller samples are attained by iterating the BBC-IPS estimator.


2015 ◽  
Vol 21 (4) ◽  
pp. 489-496 ◽  
Author(s):  
Tania Masi

AbstractThe United Nations established in 2005 the United Nations Democracy Fund (UNDEF), whose objective is to support projects submitted by national NGOs aimed at increasing government accountability. The purpose of this paper is to investigate the impact of NGOs activity on democracy exploiting the UNDEF database. An empirical analysis based on a propensity score matching (PSM) method is implemented on a sample of 102 developing countries. The findings indicate that the average treatment effect on the treated (ATT) is positive and significant only when countries receive UNDEF-funded NGOs projects for three rounds or more. In this case the Polity IV indicator improves by an average of 1.08 points with respect to the level of 2005.


PLoS ONE ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. e0249642
Author(s):  
Byeong Yeob Choi

Instrumental variable (IV) analysis is used to address unmeasured confounding when comparing two nonrandomized treatment groups. The local average treatment effect (LATE) is a causal estimand that can be identified by an IV. The LATE approach is appealing because its identification relies on weaker assumptions than those in other IV approaches requiring a homogeneous treatment effect assumption. If the instrument is confounded by some covariates, then one can use a weighting estimator, for which the outcome and treatment are weighted by instrumental propensity scores. The weighting estimator for the LATE has a large variance when the IV is weak and the target population, i.e., the compliers, is relatively small. We propose a truncated LATE that can be estimated more reliably than the regular LATE in the presence of a weak IV. In our approach, subjects who contribute substantially to the weak IV are identified by their probabilities of being compliers, and they are removed based on a pre-specified threshold. We discuss interpretation of the proposed estimand and related inference method. Simulation and real data experiments demonstrate that the proposed truncated LATE can be estimated more precisely than the standard LATE.


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