Paper Type

ERF

Description

Causal inference is a critical methodology that allows researchers to empirically test hypotheses and build theories. Ideally, the design method for establishing this causality would be through randomized controlled trials. However, studying the impact of different practices (hereinafter treatments) on initial outcomes when treatments are not applied exogenously is a challenge. Matching methods are an appropriate way to provide these study groups. The objective of this work is to provide an algorithm-based solution to match startups in a way that can mimic a human match. To do this, we use the human matching effort by Yu (2020) as a ground truth to evaluate various natural language processes and compare the performance of each with human raters. By comparing automated approaches with matching, we provide guidance for researchers interested in the causal analysis of startups using textual data and other covariates.

Paper Number

1295

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Aug 10th, 12:00 AM

Causal Matching for Startups: Methods for Controlling Confounding

Causal inference is a critical methodology that allows researchers to empirically test hypotheses and build theories. Ideally, the design method for establishing this causality would be through randomized controlled trials. However, studying the impact of different practices (hereinafter treatments) on initial outcomes when treatments are not applied exogenously is a challenge. Matching methods are an appropriate way to provide these study groups. The objective of this work is to provide an algorithm-based solution to match startups in a way that can mimic a human match. To do this, we use the human matching effort by Yu (2020) as a ground truth to evaluate various natural language processes and compare the performance of each with human raters. By comparing automated approaches with matching, we provide guidance for researchers interested in the causal analysis of startups using textual data and other covariates.

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