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Abstract:
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To estimate casual treatment effects, we propose a new matching approach based on the reduced covariates obtained from sufficient dimension reduction. Compared to the original covariates and the propensity score, which are commonly used for matching in the literature, the reduced covariates are estimable nonparametrically under a mild assumption on the original covariates, and are sufficient and effective in imputing the missing potential outcomes. In addition, under the ignorability assumption, the consistency of the proposed approach requires a weaker common support condition, and the researchers are allowed to use different reduced covariates to find matched subjects for different treatment groups. We develop relative asymptotic results, and conduct real data analysis to illustrate the usefulness of the proposed approach.
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