Equation Section 1Identification and estimation of causal effects of multiple treatments under the conditional independence assumption

The assumption that the assignment to treatments is ignorable conditional on attributes plays an important role in the applied statistic and econometric evaluation literature (Conditional Independence Assumption). This paper discusses identification using CIA when there are more than two types of mutually exclusive treatments. It turns out that low dimensional balancing scores, similar to the ones valid in the case of only two treatments, exist and can be used for identification of various causal effects. Therefore, a comparable reduction of the dimension of the estimation problem is achieved and the approach retains its basic simplicity. Furthermore, a sample reduction property is derived showing that in certain important cases it is possible to base the estimation on the specific subsample of participants. The paper also outlines a matching estimator suitable in that general framework.