Banks often assume that higher credit limits increase customer default risk because greater exposure appears to imply greater vulnerability. This reasoning, however, conflates correlation with causation. Whether increasing a customer's credit limit truly raises the likelihood of default remains...

When estimating treatment effects, the gold standard is to conduct a randomized experiment and then contrast outcomes associated with the treatment group and the control group. However, in many cases, randomized experiments are either conducted with a much smaller scale compared to the size of...

Using a rich and unique combined administrative-survey dataset, this paper explores how sensitive propensity score (PS) matching estimates of Active Labor Market Policies (ALMPs) based on the selection-on-observables assumption are to typically unobserved covariates. Using a sample of German...

Using a rich and unique combined administrative-survey dataset, this paper explores how sensitive propensity score (PS) matching estimates of Active Labor Market Policies (ALMPs) based on the selection-on-observables assumption are to typically unobserved covariates. Using a sample of German...

Abstract The increasing availability of passively observed data has yielded a growing interest in “data fusion” methods, which involve merging data from observational and experimental sources to draw causal conclusions. Such methods often require a precarious tradeoff between the unknown...

Interest in evaluating the effects of continuous treatments has been on the rise recently. To facilitate the estimation of causal effects in this setting, the present paper introduces entropy balancing for continuous treatments (EBCT) by extending the original entropy balancing methodology of...

Abstract Randomized control trials (RCTs) are the gold standard for estimating causal effects, but often use samples that are non-representative of the actual population of interest. We propose a reweighting method for estimating population average treatment effects in settings with...