SCENTS: Score explained non-randomized treatment systems

Non-randomized treatment effect models are widely used for the assessment of treatment effects in various fields and in particular social science disciplines like political science, psychometry, psychology. More specifically, these are situations where treatment is assigned to an individual based on some of their characteristics (e.g. scholarship is allocated based on merit or antihypertensive treatments are allocated based on blood pressure level) instead of being allocated randomly, as is the case, for example, in randomized clinical trials. Popular methods that have been largely employed till date for estimation of such treatment effects suffer from slow rates of convergence (i.e. slower than $\sqrt{n}$). In this paper, we present a new model coined SCENTS: Score Explained Non-Randomized Treatment Systems, and a corresponding method that allows estimation of the treatment effect at $\sqrt{n}$ rate in the presence of fairly general forms of confoundedness, when the `score' variable on whose basis treatment is assigned can be explained via certain feature measurements of the individuals under study. We show that our estimator is asymptotically normal in general and semi-parametrically efficient under normal errors. We analyze two real datasets via our method and compare our results with those obtained by using previous approaches. We conclude this paper with a discussion on some possible extensions of our approach.