Covariance Adjustments for the Analysis of Randomized Field Experiments

Abstract

Background:

It has become common practice to analyze randomized experiments using linear regression with covariates. Improved precision of treatment effect estimates is the usual motivation. In a series of important articles, David Freedman showed that this approach can be badly flawed. Recent work by Winston Lin offers partial remedies, but important problems remain.

Results:

In this article, we address those problems through a reformulation of the Neyman causal model. We provide a practical estimator and valid standard errors for the average treatment effect. Proper generalizations to well-defined populations can follow.

Conclusion:

In most applications, the use of covariates to improve precision is not worth the trouble.