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Optimal treatment assignment of a threshold-based policy: empirical protocol and related issues

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  • Giovanni Cerulli

Abstract

In the footsteps of the recent literature on empirical welfare maximization, this article wants to contribute by stressing the policy-maker empirical perspective and related issues arising when carrying out optimal policy assignment in practice. By focusing on the class of threshold-based policies, we first set out the theoretical underpinnings of the policy-maker selection problem, to then offer a solution to this via an implementation protocol applied to the popular LaLonde training programme database. This article traces a general application procedure and discusses, in particular, problems of angle solution typically arising in real applications of optimal policy assignment.

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  • Giovanni Cerulli, 2023. "Optimal treatment assignment of a threshold-based policy: empirical protocol and related issues," Applied Economics Letters, Taylor & Francis Journals, vol. 30(8), pages 1010-1017, May.
    • Handle: RePEc:taf:apeclt:v:30:y:2023:i:8:p:1010-1017
    DOI: 10.1080/13504851.2022.2032577
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