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Econometric Reviews
Article . 2025 . Peer-reviewed
License: CC BY NC ND
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SSRN Electronic Journal
Article . 2022 . Peer-reviewed
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https://dx.doi.org/10.48550/ar...
Article . 2022
License: CC BY
Data sources: Datacite
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Semiparametric Single-Index Estimation for Average Treatment Effects

Authors: Difang Huang; Jiti Gao; Tatsushi Oka;

Semiparametric Single-Index Estimation for Average Treatment Effects

Abstract

We propose a semiparametric method to estimate the average treatment effect under the assumption of unconfoundedness given observational data. Our estimation method alleviates misspecification issues of the propensity score function by estimating the single-index link function involved through Hermite polynomials. Our approach is computationally tractable and allows for moderately large dimension covariates. We provide the large sample properties of the estimator and show its validity. Also, the average treatment effect estimator achieves the parametric rate and asymptotic normality. Our extensive Monte Carlo study shows that the proposed estimator is valid in finite samples. Applying our method to maternal smoking and infant health, we find that conventional estimates of smoking's impact on birth weight may be biased due to propensity score misspecification, and our analysis of job training programs reveals earnings effects that are more precisely estimated than in prior work. These applications demonstrate how addressing model misspecification can substantively affect our understanding of key policy-relevant treatment effects.

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Keywords

FOS: Economics and business, Econometric and statistical methods, Econometrics (econ.EM), Econometrics not elsewhere classified, Economics - Econometrics

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
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