Doubly Robust Estimators with Weak Overlap

Fuente: arXiv
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Main Authors: Ma, Yukun, Sant'Anna, Pedro H. C., Sasaki, Yuya, Ura, Takuya
Format: Preprint
Published: 2023
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author Ma, Yukun
Sant'Anna, Pedro H. C.
Sasaki, Yuya
Ura, Takuya
author_facet Ma, Yukun
Sant'Anna, Pedro H. C.
Sasaki, Yuya
Ura, Takuya
contents Doubly robust (DR) estimators guard against model misspecification but remain sensitive to weak covariate overlap. We show that trimming propensity scores reduces variance but eliminates double robustness. We introduce DR estimators that retain double robustness after trimming through bias correction, preserving the original causal targets across unconfoundedness, instrumental variables, and difference-in-differences designs. In four applications, the proposed estimator yields more precise estimates: ruling out large mortality effects of Medicaid expansion, detecting workforce growth from mental health reform, recovering the Black--White test score gap without strong functional form restrictions, and recovering a positive 401(k) savings effect consistent with the prior literature.
format Preprint
id arxiv_https___arxiv_org_abs_2304_08974
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Doubly Robust Estimators with Weak Overlap
Ma, Yukun
Sant'Anna, Pedro H. C.
Sasaki, Yuya
Ura, Takuya
Econometrics
Methodology
Doubly robust (DR) estimators guard against model misspecification but remain sensitive to weak covariate overlap. We show that trimming propensity scores reduces variance but eliminates double robustness. We introduce DR estimators that retain double robustness after trimming through bias correction, preserving the original causal targets across unconfoundedness, instrumental variables, and difference-in-differences designs. In four applications, the proposed estimator yields more precise estimates: ruling out large mortality effects of Medicaid expansion, detecting workforce growth from mental health reform, recovering the Black--White test score gap without strong functional form restrictions, and recovering a positive 401(k) savings effect consistent with the prior literature.
title Doubly Robust Estimators with Weak Overlap
topic Econometrics
Methodology
url https://arxiv.org/abs/2304.08974