When is ATE enough? Risk aversion and inequality aversion in evaluating training programs

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Programs are typically evaluated through the average treatment effect and its standard error. In particular, is the treatment effect positive and is it statistically significant? In theory, programs should be evaluated in a decision framework, using social welfare functions and posterior predictive distributions for outcomes of interest. This chapter discusses the use of stochastic dominance of predictive distributions of outcomes to rank programs, and, under more restrictive parametric and functional form assumptions, the chapter develops intuitive mean-variance tests for program evaluation that are consistent with the underlying decision problem. These concepts are applied to the GAIN and JTPA datasets.

Original languageEnglish (US)
Title of host publicationModelling and Evaluating Treatment Effects in Econometrics
PublisherJAI Press
Pages263-287
Number of pages25
ISBN (Print)9780762313808
DOIs
StatePublished - 2008

Publication series

NameAdvances in Econometrics
Volume21
ISSN (Print)0731-9053

ASJC Scopus subject areas

  • Economics and Econometrics

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