PAPE: Estimation of the Population Average Prescription Effect in Randomized Experiments
Description
This function estimates the Population Average Prescription Effect with and without a budget
constraint. The details of the methods for this design are given in Imai and Li (2019).
Usage
PAPE(Tr, That, Y, plim = NA, centered = TRUE)
Arguments
Tr
A vector of the unit-level binary treatment receipt variable for each sample.
That
A vector of the unit-level binary treatment that would have been assigned by the
individualized treatment rule. If plim is specified, please ensure
that the percentage of treatment units of That is lower than the budget constraint.
Y
A vector of the outcome variable of interest for each sample.
plim
The maximum percentage of population that can be treated under the
budget constraint. Should be a decimal between 0 and 1. Default is NA which assumes
no budget constraint.
centered
If TRUE, the outcome variables would be centered before processing. This minimizes
the variance of the estimator. Default is TRUE.
Value
A list that contains the following items:
pape
The estimated
Population Average Prescription Effect.
sd
The estimated standard deviation
of PAPE.
References
Imai and Li (2019). “Experimental Evaluation of Individualized Treatment Rules”,