2024 European Winter Meeting, Palma de Majorca, Spain: December, 2024
Inequality Sensitive Optimal Treatment Assignment
Eduardo Zambrano
The egalitarian equivalent, ee, of a societal distribution of
outcomes with mean m is the outcome level such that the evaluator
is indifferent between the distribution of outcomes and a society in
which everyone obtains an outcome of ee. For an inequality averse
evaluator, ee
evaluation is made using egalitarian equivalent measures, and derive
optimal treatment rules for the Bayesian, maximin and minimax regret
inequality averse evaluators. I illustrate how the methodology operates
in the context of the JobCorps education and training program for
disadvantaged youth (Schochet, Burghardt, and McConnell (2008)) and in
Meager (2022)'s Bayesian meta analysis of the microcredit literature.
outcomes with mean m is the outcome level such that the evaluator
is indifferent between the distribution of outcomes and a society in
which everyone obtains an outcome of ee. For an inequality averse
evaluator, ee
evaluation is made using egalitarian equivalent measures, and derive
optimal treatment rules for the Bayesian, maximin and minimax regret
inequality averse evaluators. I illustrate how the methodology operates
in the context of the JobCorps education and training program for
disadvantaged youth (Schochet, Burghardt, and McConnell (2008)) and in
Meager (2022)'s Bayesian meta analysis of the microcredit literature.
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