English

Causal Identification under Interference: The Role of Treatment Assignment Independence

Econometrics 2026-04-27 v1

Abstract

Empirical researchers routinely invoke the no-interference or \textit{individualistic treatment response} (ITR) assumption to identify causal effects in observational studies, despite concerns that interference across units may arise in many economic settings. This paper studies the causal content of standard ITR-based identification formulas when arbitrary interference is present. We show that, under restrictions on dependence between treatment assignments across units, conventional ITR-based identification formulas -- including those underlying selection-on-observables, instrumental variables, regression discontinuity designs, and difference-in-differences -- identify well-defined causal objects: types of \textit{average direct effects} (ADEs). These results do not require knowledge of the interference structure or specification of exposure mappings. We also propose a sensitivity analysis framework that quantifies the robustness of statistical inference to violations of treatment-assignment independence under arbitrary interference.

Keywords

Cite

@article{arxiv.2604.22532,
  title  = {Causal Identification under Interference: The Role of Treatment Assignment Independence},
  author = {Julius Owusu and Monika Avila Márquez},
  journal= {arXiv preprint arXiv:2604.22532},
  year   = {2026}
}

Comments

84 pages and 1 figure