Regression Adjustment for Estimating Distributional Treatment Effects in Randomized Controlled Trials

Tatsushi Oka, Shota Yasui, Yuta Hayakawa and Undral Byambadalai

Papers from arXiv.org

Abstract: In this paper, we address the issue of estimating and inferring distributional treatment effects in randomized experiments. The distributional treatment effect provides a more comprehensive understanding of treatment heterogeneity compared to average treatment effects. We propose a regression adjustment method that utilizes distributional regression and pre-treatment information, establishing theoretical efficiency gains without imposing restrictive distributional assumptions. We develop a practical inferential framework and demonstrate its advantages through extensive simulations. Analyzing water conservation policies, our method reveals that behavioral nudges systematically shift consumption from high to moderate levels. Examining health insurance coverage, we show the treatment reduces the probability of zero doctor visits by 6.6 percentage points while increasing the likelihood of 3-6 visits. In both applications, our regression adjustment method substantially improves precision and identifies treatment effects that were statistically insignificant under conventional approaches.

Date: 2024-07, Revised 2025-01
New Economics Papers: this item is included in nep-ecm and nep-exp
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