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Project Citation: 

Bai, Yuehao. Data and Code for: Optimality of Matched-Pair Designs in Randomized Controlled Trials. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-05-21. https://doi.org/10.3886/E171321V2

Project Description

Summary:  View help for Summary
In randomized controlled trials (RCTs), treatment is often assigned by stratified randomization. I show that among all stratified randomization schemes which treat all units with probability one half, a certain matched-pair design achieves the maximum statistical precision for estimating the average treatment effect (ATE). In an important special case, the optimal design pairs units according to the baseline outcome. In a simulation study based on datasets from 10 RCTs, this design lowers the standard error for the estimator of the ATE by 10% on average, and by up to 34%, relative to the original designs.

Scope of Project

JEL Classification:  View help for JEL Classification
      C12 Hypothesis Testing: General
      C13 Estimation: General
      C14 Semiparametric and Nonparametric Methods: General
      C90 Design of Experiments: General


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