Stratifying on Treatment Status

Jinyong Hahn, John Ham, Geert Ridder and Shuyang Sheng

Papers from arXiv.org

Abstract: We investigate the estimation of treatment effects from a sample that is stratified on the binary treatment status. In the case of unconfounded assignment where the potential outcomes are independent of the treatment given covariates, we show that standard estimators of the average treatment effect are inconsistent. In the case of an endogenous treatment and a binary instrument, we show that the IV estimator is inconsistent for the local average treatment effect. In both cases, we propose simple alternative estimators that are consistent in stratified samples, assuming that the fraction treated in the population is known or can be estimated.

Date: 2024-04, Revised 2025-01
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