Bias Correction for Randomization-Based Estimation in Inexactly Matched Observational Studies
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Matching has been widely used to mimic a randomized experiment with observational data. Ideally, treated subjects are exactly matched with controls for the covariates, and randomization-based estimation can then be conducted as in a randomized experiment (assuming no unobserved covariates). However, when there exists continuous covariates or many covariates, matching typically should be inexact. Previous studies have routinely ignored inexact matching in the downstream randomization-based estimation as long as some covariate balance criteria are satisfied, which can cause severe estimation bias. Built on the covariate-adaptive randomization inference framework, in this research note, we propose two new classes of bias-corrected randomization-based estimators to reduce estimation bias due to inexact matching: the bias-corrected maximum p-value estimator for the constant treatment effect and the bias-corrected difference-in-means estimator for the average treatment effect. Our simulation results show that the proposed bias-corrected estimators can effectively reduce estimation bias due to inexact matching.
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