The
effect of of treatment on the treated in the Decision theoretic
framework
Sara Geneletti (LSE)
15/03/10
We propose a
new appraoch based on the decision theoretic framework for causal
inference, to formulate and derive the effect of treatment on the
treated (ETT) a common measure of effectivness in the econometrics.
Typically, the ETT has been expressed in terms of potential responses
in the literature. We show that this formulation is a special case of
the decision theoretic formulation. The ETT is typically of interest
when evaluating the effect of schemes (such as training programmes)
that require voluntary participation from eligible members of the
population - those who participate are regarded as the treated. The ETT
is also of interest in the epidemiologic context when randomisation is
not possible. We derive the conditions under which the ETT can be
identified and employ an instrumental variable approach to do so.
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[Last modified: Mar. 15th 2010 by Kostas
Kalogeropoulos]