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Statistical Causal Inferences and Their Applications in Public Health Research, p. 49-89

DOI: 10.1007/978-3-319-41259-7_3

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Sufficient Covariate, Propensity Variable and Doubly Robust Estimation

Journal article published in 2015 by Dawid AP Berzuini G. Guo H., Hui Guo ORCID, Philip Dawid, Giovanni Berzuini
This paper is made freely available by the publisher.
This paper is made freely available by the publisher.

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Abstract

Statistical causal inference from observational studies often requires adjustment for a possibly multi-dimensional variable, where dimension reduction is crucial. The propensity score, first introduced by Rosenbaum and Rubin, is a popular approach to such reduction. We address causal inference within Dawid's decision-theoretic framework, where it is essential to pay attention to sufficient covariates and their properties. We examine the role of a propensity variable in a normal linear model. We investigate both population-based and sample-based linear regressions, with adjustments for a multivariate covariate and for a propensity variable. In addition, we study the augmented inverse probability weighted estimator, involving a combination of a response model and a propensity model. In a linear regression with homoscedasticity, a propensity variable is proved to provide the same estimated causal effect as multivariate adjustment. An estimated propensity variable may, but need not, yield better precision than the true propensity variable. The augmented inverse probability weighted estimator is doubly robust and can improve precision if the propensity model is correctly specified.