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Causal Inference from Hypothetical Evaluations

Author

Listed:
  • B. Douglas Bernheim
  • Daniel Björkegren
  • Jeffrey Naecker
  • Michael Pollmann

Abstract

This paper develops a method to infer causal effects of treatments on choices, by exploiting relationships between choices and hypothetical evaluations. Under specified conditions, it can recover treatment effects even if the treatment does not vary across observations in the sample. Additional advantages include more comprehensive recovery of heterogeneous treatment effects and potential improvements in precision. These advantages can also be attained in some environments where treatment is assigned endogenously. We provide proof of concept by using the approach to estimate the price responsiveness of the demand for snack foods in the laboratory, and the response of contributions to the availability of matching funds on a microfinance website.

Suggested Citation

  • B. Douglas Bernheim & Daniel Björkegren & Jeffrey Naecker & Michael Pollmann, 2021. "Causal Inference from Hypothetical Evaluations," NBER Working Papers 29616, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29616
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    Cited by:

    1. Romuald Meango, 2023. "Using Probabilistic Stated Preference Analyses to Understand Actual Choices," Papers 2307.13966, arXiv.org.
    2. Ingvild Almås & Orazio Attanasio & Pamela Jervis, 2024. "Presidential Address: Economics and Measurement: New Measures to Model Decision Making," Econometrica, Econometric Society, vol. 92(4), pages 947-978, July.

    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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