https://macropaperwarehouse.com/authors/jorg-stoye/Jörg StoyeHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/decision-theory-for-treatment-choice-problems-with-partial-identification/https://macropaperwarehouse.com/papers/decision-theory-for-treatment-choice-problems-with-partial-identification/<p>This paper applies classical statistical decision theory (Wald 1950) to treatment choice problems where the data only partially identify payoff-relevant parameters. The policy maker chooses an action a in [0,1] — interpreted as the share of the population assigned to a new policy — to maximize welfare that is linear in the action. The data are Gaussian, and the key departure from prior literature is that the mean function mapping parameters to data need not be injective, so even infinite data may not reveal the optimal action.</p>