English

Causal clustering: design of cluster experiments under network interference

Econometrics 2025-01-29 v3 Statistics Theory Methodology Statistics Theory

Abstract

This paper studies the design of cluster experiments to estimate the global treatment effect in the presence of network spillovers. We provide a framework to choose the clustering that minimizes the worst-case mean-squared error of the estimated global effect. We show that optimal clustering solves a novel penalized min-cut optimization problem computed via off-the-shelf semi-definite programming algorithms. Our analysis also characterizes simple conditions to choose between any two cluster designs, including choosing between a cluster or individual-level randomization. We illustrate the method's properties using unique network data from the universe of Facebook's users and existing data from a field experiment.

Keywords

Cite

@article{arxiv.2310.14983,
  title  = {Causal clustering: design of cluster experiments under network interference},
  author = {Davide Viviano and Lihua Lei and Guido Imbens and Brian Karrer and Okke Schrijvers and Liang Shi},
  journal= {arXiv preprint arXiv:2310.14983},
  year   = {2025}
}
R2 v1 2026-06-28T12:59:02.152Z