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Main Authors: Olea, José Luis Montiel, Prallon, Brenda, Qiu, Chen, Stoye, Jörg, Sun, Yiwei
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2408.09187
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author Olea, José Luis Montiel
Prallon, Brenda
Qiu, Chen
Stoye, Jörg
Sun, Yiwei
author_facet Olea, José Luis Montiel
Prallon, Brenda
Qiu, Chen
Stoye, Jörg
Sun, Yiwei
contents We present a decision-theoretic justification for viewing the question of how to best choose where to experiment in order to optimize external validity as a $k$-median problem, a popular problem in computer science and operations research. We present conditions under which minimizing the worst-case, welfare-based regret among all nonrandom schemes that select $k$ sites to experiment is approximately equal - and sometimes exactly equal - to finding the k most central vectors of baseline site-level covariates. The k-median problem can be formulated as a linear integer program. Two empirical applications illustrate the theoretical and computational benefits of the suggested procedure.
format Preprint
id arxiv_https___arxiv_org_abs_2408_09187
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Externally Valid Selection of Experimental Sites via the k-Median Problem
Olea, José Luis Montiel
Prallon, Brenda
Qiu, Chen
Stoye, Jörg
Sun, Yiwei
Econometrics
We present a decision-theoretic justification for viewing the question of how to best choose where to experiment in order to optimize external validity as a $k$-median problem, a popular problem in computer science and operations research. We present conditions under which minimizing the worst-case, welfare-based regret among all nonrandom schemes that select $k$ sites to experiment is approximately equal - and sometimes exactly equal - to finding the k most central vectors of baseline site-level covariates. The k-median problem can be formulated as a linear integer program. Two empirical applications illustrate the theoretical and computational benefits of the suggested procedure.
title Externally Valid Selection of Experimental Sites via the k-Median Problem
topic Econometrics
url https://arxiv.org/abs/2408.09187