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This paper studies the identification and estimation of policy effects when treatment status is binary and endogenous. We introduce a new class of marginal treatment effects (MTEs) based on the influence function of the functional…

Econometrics · Economics 2024-08-08 Julian Martinez-Iriarte , Yixiao Sun

Stress testing poses a causal question: how would portfolio credit losses change if the macroeconomy followed an adverse counterfactual path? Yet standard practice remains predictive and might be therefore vulnerable to omitted-variable…

Artificial Intelligence · Computer Science 2026-05-19 Yu Wang , Xiangchen Liu , Siguang Li

A key objective of decomposition analysis is to identify a factor (the 'mediator') contributing to disparities in an outcome between social groups. In decomposition analysis, a scholarly interest often centers on estimating how much the…

Methodology · Statistics 2022-05-27 Soojin Park , Suyeon Kang , Chioun Lee , Shujie Ma

Nearly all statistical analyses that inform policy-making are based on imperfect data. As examples, the data may suffer from measurement errors, missing values, sample selection bias, or record linkage errors. Analysts have to decide how to…

Methodology · Statistics 2025-10-24 Adway S. Wadekar , Jerome P. Reiter

Inferring the causal effect of a non-randomly assigned exposure on an outcome requires adjusting for common causes of the exposure and outcome to avoid biased conclusions. Notwithstanding the efforts investigators routinely make to measure…

Methodology · Statistics 2021-02-04 Wen Wei Loh , Stijn Vansteelandt

Unmeasured confounding may undermine the validity of causal inference with observational studies. Sensitivity analysis provides an attractive way to partially circumvent this issue by assessing the potential influence of unmeasured…

Statistics Theory · Mathematics 2015-07-15 Peng Ding , Tyler VanderWeele

We develop a novel method for counterfactual analysis based on observational data using prediction intervals for units under different exposures. Unlike methods that target heterogeneous or conditional average treatment effects of an…

Statistics Theory · Mathematics 2018-07-18 Dave Zachariah , Petre Stoica

Estimating an individual's potential outcomes under counterfactual treatments is a challenging task for traditional causal inference and supervised learning approaches when the outcome is high-dimensional (e.g. gene expressions, impulse…

Machine Learning · Statistics 2025-02-13 Yulun Wu , Layne C. Price , Zichen Wang , Vassilis N. Ioannidis , Robert A. Barton , George Karypis

Unmeasured confounding remains a critical challenge in causal inference for the social sciences. This paper proposes a sensitivity analysis framework to systematically evaluate how unmeasured confounders influence statistical inference in…

Methodology · Statistics 2025-04-21 Cheng Lin , Jose M. Pena , Adel Daoud

We propose a framework for analyzing the sensitivity of counterfactuals to parametric assumptions about the distribution of latent variables in structural models. In particular, we derive bounds on counterfactuals as the distribution of…

Econometrics · Economics 2024-03-26 Timothy Christensen , Benjamin Connault

Causal inference relies on the untestable assumption of no unmeasured confounding. Sensitivity analysis can be used to quantify the impact of unmeasured confounding on causal estimates. Among sensitivity analysis methods proposed in the…

Methodology · Statistics 2026-03-12 Yushu Zou , Liangyuan Hu , Amanda Ricciuto , Mark Deneau , Kuan Liu

The counterfactual distribution models the effect of the treatment in the untreated group. While most of the work focuses on the expected values of the treatment effect, one may be interested in the whole counterfactual distribution or…

Machine Learning · Statistics 2022-11-04 Diego Martinez-Taboada , Dino Sejdinovic

Energy justice is a growing area of interest in interdisciplinary energy research. However, identifying systematic biases in the energy sector remains challenging due to confounding variables, intricate heterogeneity in counterfactual…

Machine Learning · Computer Science 2024-01-25 Song Wei , Xiangrui Kong , Alinson Santos Xavier , Shixiang Zhu , Yao Xie , Feng Qiu

In observational studies, identification of ATEs is generally achieved by assuming that the correct set of confounders has been measured and properly included in the relevant models. Because this assumption is both strong and untestable, a…

Methodology · Statistics 2020-12-18 Matteo Bonvini , Edward H Kennedy

A concentration index, a standardized covariance between a health variable and relative income ranks, is often used to quantify income-related health inequalities. There is a lack of formal approach to study the effect of an exposure, e.g.,…

Methodology · Statistics 2025-01-14 Mohammad Ghasempour , Xavier de Luna , Per E. Gustafsson

Standard measures of effect, including the risk ratio, the odds ratio, and the risk difference, are associated with a number of well-described shortcomings, and no consensus exists about the conditions under which investigators should…

Methodology · Statistics 2019-10-08 Anders Huitfeldt , Andrew Goldstein , Sonja A. Swanson

We propose a conceptual framework for counterfactual and welfare analysis for approximate models. Our key assumption is that model approximation error is the same magnitude at new choices as the observed data. Applying the framework to…

Econometrics · Economics 2020-09-09 Roy Allen , John Rehbeck

Omitted variable bias can affect treatment effect estimates obtained from observational data due to the lack of random assignment to treatment groups. Sensitivity analyses adjust these estimates to quantify the impact of potential omitted…

Methodology · Statistics 2010-11-10 Carrie A. Hosman , Ben B. Hansen , Paul W. Holland

Counterfactuals are central in causal human reasoning and the scientific discovery process. The uplift, also called conditional average treatment effect, measures the causal effect of some action, or treatment, on the outcome of an…

Machine Learning · Computer Science 2025-12-10 Théo Verhelst , Denis Mercier , Jeevan Shrestha , Gianluca Bontempi

We propose a formal model for counterfactual estimation with unobserved confounding in "data-rich" settings, i.e., where there are a large number of units and a large number of measurements per unit. Our model provides a bridge between the…

Econometrics · Economics 2025-04-03 Alberto Abadie , Anish Agarwal , Devavrat Shah