Applied Impact Evaluation
Inverse probability weighting (IPW) is a statistical technique used to adjust for selection bias and confounding factors by assigning weights to observations based on their inverse probability of being treated or observed. This method helps create a pseudo-population that mirrors the target population, allowing for more accurate estimation of treatment effects and causal relationships. IPW is especially useful when dealing with missing data and attrition, as well as in conjunction with methods like propensity score matching to enhance the reliability of observational studies.
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