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. Author manuscript; available in PMC: 2023 Jun 23.
Published in final edited form as: Am Econ Rev. 2022 Sep;112(9):2992–3038. doi: 10.1257/aer.20201653

Table 5:

Disparate Impact Decompositions

Baseline No Racial Bias Equal Signal Quality Both

Panel A: Change Black Parameters (1) (2) (3) (4)

 Disparate Impact 0.047 −0.042 0.095 0.039
  Release Rates (W/B) 0.768 / 0.703 0.768 / 0.795 0.768 / 0.652 0.768 / 0.709
 Racial Bias 0.074 0.000 0.074 0.000
  Marginal Outcomes (W/B) 0.650 / 0.577 0.650 / 0.650 0.650 / 0.577 0.650 / 0.650
 Signal Quality (W/B) 1.386 / 0.970 1.386 / 0.970 1.386 / 1.386 1.386 / 1.386
Panel B: Change White Parameters
 Disparate Impact −0.006 0.136 0.062
  Release Rates (W/B) 0.716 / 0.703 0.853 / 0.703 0.781 / 0.703
 Racial Bias 0.000 0.074 0.000
  Marginal Outcomes (W/B) 0.577 / 0.577 0.650 / 0.577 0.577 / 0.577
 Signal Quality (W/B) 1.386 / 0.970 0.970 / 0.970 0.970 / 0.970

Judges 268 268 268 268

Notes. Column 1 of this table reports average disparate impact and racial bias across judges and 250 simulations of the hierarchical MTE model, along with average release rates, marginal released outcomes, and signal quality of Black and white defendants. Simulations are based on the estimates from columns 2 and 4 of Appendix Table A18. Column 2 recomputes the statistics for a counterfactual in which Black (Panel A) or white (Panel B) release rates are set to eliminate racial bias, while column 3 adjusts Black (Panel A) or white (Panel B) signal quality to equalize signal quality across race. Column 4 applies both counterfactuals simultaneously.