Heterogeneous coefficients, control variables and identification of multiple treatment effects

Multivalued treatments and decomposition analysis: An application to the WIA program

W K Newey and Sami Stouli

Biometrika, 2022, vol. 109, issue 3, 865-872

Abstract: SummaryMulti-dimensional heterogeneity and endogeneity are important features of models with multiple treatments. We consider a heterogeneous coefficients model where the outcome is a linear combination of dummy treatment variables, with each variable representing a different kind of treatment. We use control variables to give necessary and sufficient conditions for identification of average treatment effects. With mutually exclusive treatments we find that, provided the heterogeneous coefficients are mean independent from treatments given the controls, a simple identification condition is that the generalized propensity scores (Imbens, 2000) be bounded away from zero and that their sum be bounded away from one, with probability one. Our analysis extends to distributional and quantile treatment effects, as well as corresponding treatment effects on the treated. These results generalize the classical identification result of Rosenbaum & Rubin (1983) for binary treatments.

Keywords: Conditional nonsingularity; Control variable; Heterogeneous coefficients; Identification; Multiple treatments; Propensity score; Treatment effect (search for similar items in EconPapers)
Date: 2022
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Working Paper: Heterogeneous Coefficients, Control Variables, and Identification of Multiple Treatment Effects (2021)
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