CFDP 1927R
Inference on Optimal Treatment Assignments
Author(s):Publication Date: November 2013
Revision Date: April 2014
Pages: 31
Abstract:
We consider inference on optimal treatment assignments. Our methods allow for inference on the treatment assignment rule that would be optimal given knowledge of the population treatment effect in a general setting. The procedure uses multiple hypothesis testing methods to determine a subset of the population for which assignment to treatment can be determined to be optimal after conditioning on all available information, with a prespecified level of confidence. A monte carlo study confirms that the inference procedure has good small sample behavior. We apply the method to study the Mexican conditional cash transfer program Progresa.
Keywords:
Treatment assignment, Multiple testing
JEL Classification Codes: C10, C18