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Marginal Treatment Effects from a Propensity Score Perspective

Author(s): Zhou, Xiang; Xie, Yu

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Abstract: We offer a propensity score perspective to interpret and analyze the marginal treatment effect (MTE). Specifically, we redefine MTE as the expected treatment effect conditional on the propensity score and a latent variable representing unobserved resistance to treatment. As with the original MTE, the redefined MTE can be used as a building block for constructing standard causal estimands. The weights associated with the new MTE, however, are simpler, more intuitive, and easier to compute. Moreover, the redefined MTE immediately reveals treatment effect heterogeneity among individuals at the margin of treatment, enabling us to evaluate a wide range of policy effects.
Publication Date: 28-Oct-2019
Citation: Zhou, Xiang, Xie, Yu. Marginal Treatment Effects from a Propensity Score Perspective. Journal of Political Economy, 127(6), 3070 - 3084. doi:10.1086/702172
DOI: doi:10.1086/702172
Pages: 3070 - 3084
Type of Material: Journal Article
Journal/Proceeding Title: Journal of Political Economy
Version: Final published version. Article is made available in OAR by the publisher's permission or policy.

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