The design versus the analysis of observational studies for causal effects: parallels with the design of randomized trials

For estimating causal effects of treatments, randomized experiments are generally considered the gold standard. Nevertheless, they are often infeasible to conduct for a variety of reasons, such as ethical concerns, excessive expense, or timeliness. Consequently, much of our knowledge of causal effects must come from non-randomized observational studies. This article will advocate the position that observational studies can and should be designed to approximate randomized experiments as closely as possible. In particular, observational studies should be designed using only background information to create subgroups of similar treated and control units, where 'similar' here refers to their distributions of…