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Statistical prediction models are often trained on data from different probability distributions than their eventual use cases. One approach to proactively prepare for these shifts harnesses the intuition that causal mechanisms should…

Machine Learning · Computer Science 2023-08-02 Bijan Mazaheri , Atalanti Mastakouri , Dominik Janzing , Michaela Hardt

There is growing empirical evidence that firm heterogeneity is technologically non-neutral. This paper extends Gandhi et al.'s (2020) proxy variable framework for structurally identifying production functions to a more general case when…

General Economics · Economics 2023-02-28 Emir Malikov , Shunan Zhao , Jingfang Zhang

Dynamic input-output models are standard tools for understanding inter-industry dependencies and how economies respond to shocks like disasters and pandemics. However, traditional approaches often assume fixed prices, limiting their ability…

General Economics · Economics 2025-05-16 Jan Hurt , Stefan Thurner , Peter Klimek

Aggregate outcome variables collected through surveys and administrative records are often subject to systematic measurement error. For instance, in disaster loss databases, county-level losses reported may differ from the true damages due…

Machine Learning · Computer Science 2026-03-17 Saketh Vishnubhatla , Shu Wan , Andre Harrison , Adrienne Raglin , Huan Liu

This paper studies identification of the effect of a mis-classified, binary, endogenous regressor when a discrete-valued instrumental variable is available. We begin by showing that the only existing point identification result for this…

Econometrics · Economics 2020-11-17 Francis J. DiTraglia , Camilo Garcia-Jimeno

Generalization outside the scope of one's training data requires leveraging prior knowledge about the effects that transfer, and the effects that don't, between different data sources. Transfer learning is a framework for specifying and…

Machine Learning · Computer Science 2025-08-22 Sabina J. Sloman , Julien Martinelli , Samuel Kaski

Standard instrumental variables (IV) methods identify a Local Average Treatment Effect under monotonicity, which rules out defiers. In many empirical environments, however, distinct instruments may induce heterogeneous and even opposing…

Econometrics · Economics 2026-02-16 Johann Caro-Burnett

Instrumental variables (IVs) are a popular and powerful tool for estimating causal effects in the presence of unobserved confounding. However, classical approaches rely on strong assumptions such as the $\textit{exclusion criterion}$, which…

Mechanistic Interpretability (MI) aims to reverse-engineer model behaviors by identifying functional sub-networks. Yet, the scientific validity of these findings depends on their stability. In this work, we argue that circuit discovery is…

Machine Learning · Computer Science 2026-02-04 Maxime Méloux , François Portet , Maxime Peyrard

We consider estimation and inference for a regression coefficient in panels with interactive fixed effects (i.e., with a factor structure). We demonstrate that existing estimators and confidence intervals (CIs) can be heavily biased and…

Econometrics · Economics 2025-05-13 Timothy B. Armstrong , Martin Weidner , Andrei Zeleneev

Instrumental variables have been widely used to estimate the causal effect of a treatment on an outcome. Existing confidence intervals for causal effects based on instrumental variables assume that all of the putative instrumental variables…

Methodology · Statistics 2016-07-14 Hyunseung Kang , T. Tony Cai , Dylan S. Small

Instrumental variable regression is a common approach for causal inference in the presence of unobserved confounding. However, identifying valid instruments is often difficult in practice. In this paper, we propose a novel method based on…

Methodology · Statistics 2026-01-22 Gregor Steiner , Jeremie Houssineau , Mark F. J. Steel

Its conceptual appeal and effectiveness has made latent factor modeling an indispensable tool for multivariate analysis. Despite its popularity across many fields, there are outstanding methodological challenges that have hampered practical…

Methodology · Statistics 2018-12-12 Kenichiro McAlinn , Veronika Rockova , Enakshi Saha

In settings where Machine Learning (ML) algorithms automate or inform consequential decisions about people, individual decision subjects are often incentivized to strategically modify their observable attributes to receive more favorable…

Machine Learning · Computer Science 2022-06-10 Keegan Harris , Daniel Ngo , Logan Stapleton , Hoda Heidari , Zhiwei Steven Wu

The instrumental variable method is widely used in the health and social sciences for identification and estimation of causal effects in the presence of potentially unmeasured confounding. In order to improve efficiency, multiple…

Methodology · Statistics 2022-04-19 Baoluo Sun , Zhonghua Liu , Eric Tchetgen Tchetgen

Instrumental variable (IV) regression is a standard strategy for learning causal relationships between confounded treatment and outcome variables from observational data by utilizing an instrumental variable, which affects the outcome only…

Machine Learning · Computer Science 2023-06-28 Liyuan Xu , Yutian Chen , Siddarth Srinivasan , Nando de Freitas , Arnaud Doucet , Arthur Gretton

We develop a new approach to estimating flexible demand models with exogenous supply-side shocks. Our approach avoids conventional assumptions of exogenous product characteristics, putting no restrictions on product entry, despite using…

Econometrics · Economics 2025-04-08 Kirill Borusyak , Mauricio Caceres Bravo , Peter Hull

Empirical models of demand for differentiated products rely on low-dimensional product representations to capture substitution patterns. These representations are increasingly proxied by applying ML methods to high-dimensional, unstructured…

Econometrics · Economics 2026-01-12 Timothy Christensen , Giovanni Compiani

Recommendation systems aim to predict users' feedback on items not exposed to them. Confounding bias arises due to the presence of unmeasured variables (e.g., the socio-economic status of a user) that can affect both a user's exposure and…

Machine Learning · Computer Science 2023-06-16 Qing Zhang , Xiaoying Zhang , Yang Liu , Hongning Wang , Min Gao , Jiheng Zhang , Ruocheng Guo

We propose a weak-identification-robust test for linear instrumental variable (IV) regressions with high-dimensional instruments, whose number is allowed to exceed the sample size. In addition, our test is robust to general error…

Econometrics · Economics 2025-07-01 Qu Feng , Sombut Jaidee , Wenjie Wang