Causal Effect Estimation

Latest papers 184

Jul 12, 2026cs.LG

The Spectral Structure of Latent Treatment Effects

Identifying heterogeneous treatment effects under unobserved confounding is central in observational causal inference. In proxy models with a discrete latent confounder, prior Synthetic Potential Outcomes (SPO) [Mazaheri-Squires-Uhler '25] recover the mixture of treatment effects through recursively constructed scalar moments. We show that this sequence is one projection of a more fundamental object. Under the same population factorization assumptions, there is an exact compressed observable operator: after projecting onto the shared proxy signal subspace, the difference of two treatment-arm quotient operators is similar to the diagonal matrix of latent treatment effects. Its eigenvalues are the latent effects; its lifted left eigenvectors, after anchor normalization, recover the target-proxy feature matrix and then the latent mixture proportions. Every scalar SPO moment is a bilinear functional of a power of this operator. The resulting estimator handles overcomplete proxy systems, replaces high-order scalar inversion with finite-dimensional spectral analysis, and admits high-probability first-order perturbation bounds for treatment effects, feature rows, and simplex-projected mixture weights.
Jul 12, 2026stat.ML

Representation Learning for Semiparametric Causal Mediation Analysis under No Essential Heterogeneity

We propose a two-stage estimator for structural mediation parameters that combines deep representation learning with G-estimation under the "no essential heterogeneity" (NEH) assumption. We call the method UNIT. In the first stage,TARNet estimates the heterogeneous effect of a randomized treatment on a mediator by learning a shared covariate representation across treatment arms.The resulting conditional average treatment effect (CATE) estimate provides a plug-in approximation to the heterogeneity-dependent component of the weight function entering the G-estimating equation of Zheng and Zhou (2015), which identifies the structural parameters even in the presence of unmeasured mediator-outcome confounding. We show that more accurate first-stage representation learning can yield a more informative plug-in weight and thereby improve the precision of the structural parameter estimator. In simulations with non-Gaussian covariates and nonlinear mediator effects, TARNet weights reduce the Stage-2 standard error of the mediation coefficient by a factor of 1.451.45 to 1.511.51 (median across replications, n≥2000n \ge 2000) relative to the classical approach, at no cost to bias or coverage.
Jul 9, 2026cs.LG

Workload-Preserving Differentially Private Synthetic Data for Causal Inference via Maximum-Entropy Calibration

Workload-based differentially private (DP) synthetic data methods privately measure aggregate queries and post-process the noisy answers into synthetic records. Generic workloads can achieve strong distributional fidelity, but causal estimands such as the average treatment effect (ATE) depend on treatment-arm balance and outcome moments that generic marginals need not preserve. We propose causal workloads: DP query sets designed around the orthogonal moments used by doubly robust causal estimators. The released workload can be used directly by stable moment-map estimators or reconstructed by maximum-entropy calibration into reusable synthetic data; our theory decomposes ATE error into sampling, privacy, workload-approximation, Monte Carlo, and calibration terms. We also introduce Causal-AIM, an adaptive workload selector, and a noise-aware multiple-imputation (NA+MI) procedure for confidence intervals from DP synthetic data. Because the workload is released once, the same DP synthetic table can support ATE, ATT, and subgroup analyses without additional privacy spending. Empirically, causal workloads are most useful at strict privacy budgets and for calibrated uncertainty, while generic workloads often retain an advantage for point RMSE as privacy relaxes. The broader lesson is a tradeoff: distributional fidelity can help point accuracy, but valid causal inference requires preserving causal moments and propagating DP noise rather than treating synthetic rows as real.
Jul 6, 2026cs.LG

CanniUplift: A Holistic Framework for Mitigating Seller and Incentive Cannibalization in E-commerce Uplift Modeling

Personalized incentive allocation is vital for e-commerce, where uplift modeling is the standard for estimating Individual Treatment Effects (ITE). However, traditional models often fail in complex multi-seller environments with violations of the Stable Unit Treatment Value Assumption (SUTVA). We identify two critical challenges: Seller-level Cannibalization, where incentives shift expenditure between shops without growing the platform, and Incentive-level Cannibalization, where organic conversions or alternative rewards introduce significant noise into incrementality estimation. In this paper, we propose CanniUplift, a unified framework to mitigate these dual-source cannibalization effects. Specifically, we design Platform-level Global Alignment (PGA) to capture cross-shop substitution through global GMV consistency constraints. To tackle incentive-driven noise, we introduce Redemption-based Decomposition Denoising (RDD), which uses redemption behavior to decompose treated outcomes and reduce attribution noise within an entire-space framework. Furthermore, a Treat-Attention mechanism is designed to model intricate interactions between users' historical behaviors and current treatment options. Extensive experiments on both synthetic and large-scale industrial datasets demonstrate that CanniUplift significantly outperforms state-of-the-art baselines. Ablation studies confirm that the integration of PGA and RDD consistently improves wAUUC and wQINI. Successfully deployed online, our framework achieved a 4.08% relative increase in platform-wide incremental GMV (Delta GMV) over the production baseline and improved ROI in online A/B tests, proving effective in driving global platform growth.
Jul 6, 2026stat.ML

Geometric Causal Models

Scientists often seek to draw causal inferences from structured data that is not independently and identically distributed, such as spatial data, network data, or molecular data. We develop geometric causal models (GCMs), a framework for causal inference from dependent data that exploits underlying symmetries of the data generating process. For example, in spatial data, we consider processes that are symmetric under translations, or in graph data, symmetric under permutations of the nodes. We show how symmetries, formalized with group theory, can enable causal identification and estimation. We deploy ergodic theory for amenable groups to establish identification, and combine geometric deep learning with scalable Bayesian inference for estimation. We recover i.i.d. causal models and do-calculus when the data is a sequence and the symmetry is permutation equivariance, and find novel types of causal models when we use alternate structures and symmetries. As an example, we construct a causal model that satisfies the symmetries of DNA. This GCM enables new estimators for the effects of genetic variation, combining deep functional genomics models to describe outcomes and DNA language models to describe propensities. We illustrate on semisynthetic data.
Jul 5, 2026cs.LG

Knowledge-Informed Local Causal Discovery of Optimal Adjustment Sets

Local causal discovery is a scalable alternative to global structure learning. However, it can struggle to identify valid adjustment sets in data-scarce settings because of finite-sample uncertainty, incomplete local neighborhoods, and unresolved Markov equivalence. Although many application domains provide structured background knowledge, its integration into local causal discovery remains limited. We propose b-LOAD, a knowledge-informed extension of the LOAD algorithm for local discovery of optimal adjustment sets. b-LOAD incorporates prior edge constraints directly into the local structure-learning procedure and uses Meek's rules to expand the discovery frontier dynamically, yielding a knowledge-constrained partially directed graph over the relevant local subgraph. This strategy helps prevent structurally relevant nodes introduced by prior knowledge from being excluded by local search. We prove that, under sound background knowledge, the procedure monotonically refines the admissible equivalence class and can enlarge the set of identifiable causal queries, enabling recovery of optimal adjustment sets that are not identifiable from observational conditional-independence information alone. Empirically, b-LOAD improves downstream causal effect estimation relative to purely data-driven and standard knowledge-augmented baselines, particularly in data-scarce and structurally complex regimes. Results on real-world biological networks show that locally targeted prior knowledge provides the largest gains and remains beneficial under moderate structural noise. These findings position b-LOAD as a scalable approach for converting fragmented domain knowledge into more reliable causal-effect estimation.
Jul 5, 2026stat.ML

Fixed-Confidence Best-Arm Identification for Causal Mediation Analysis

This paper studies the problem of identifying the treatment that maximizes the expected natural direct potential outcome (NDPO), which captures the potential outcome of an intervention while excluding the pathway transmitted through a mediator that researchers may wish to remove from evaluation. We first establish population-level identification of the expected NDPO in a causal bandit setting using observable interventional distributions. We then develop a fixed-confidence best-arm identification (BAI) algorithm based on the Track-and-Stop (TaS) framework, employing a cutting-set method to solve the resulting semi-infinite optimization problem. The proposed algorithm achieves sample-efficient identification with a high-probability correctness guarantee. We prove that it satisfies δδ-correctness and asymptotic optimality. Finally, we validate the approach through empirical evaluations on a large-scale real-world advertising dataset (IPinYou).
Jul 4, 2026stat.ME

Significance-First Splitting: Aligning Treatment Heterogeneity Detection with Honest Estimation

Estimating heterogeneous treatment effects (CATE) requires simultaneously detecting effect modification and quantifying estimation uncertainty. Existing tree-based methods make an uneasy trade-off: significance-based approaches (Radcliffe and Surry 2011) identify subgroup interactions directly but lack valid inference; honest causal trees (Athey and Imbens 2016) deliver nominal confidence interval coverage but use outcome-agnostic splitting criteria that sacrifice interaction sensitivity. We introduce a hybrid algorithm that fuses significance-based splitting with honest sample-splitting and cross-validation. Our splitting criterion uses the squared tt-statistic for the treatment ×\times side interaction (t2t^2), which is shown to be directly aligned with the honest EMSEτ\text{EMSE}_τ criterion when the interaction is strong. Post-hoc honest cross-validation selects the cost-complexity penalty, giving a single principled estimator with nominal CI coverage at the leaf level. For forests, we retain bootstrap count vectors to enable an infinitesimal jackknife (IJ) variance estimate of Monte-Carlo convergence rather than formal pointwise inference. On the three synthetic designs from (Athey and Imbens 2016) the single tree achieves approximately 90% leaf-average CI coverage at the 90% nominal level across all three designs (200 replications each); on the Criteo, Hillstrom and Starbucks uplift datasets we match Qini coefficient performance of S-, T-learner and GRF baselines. An open-source Python package with reproducible seeds, sklearn-compatible API, and full test coverage accompanies this work (https://codeberg.org/hadjipantelis/rattus).
Jul 3, 2026stat.ME

CaSPECT: Discovering Causally Homogeneous Subgroups via Directed Spectral Clustering

We propose \textbf{CaSPECT}, a causal spectral clustering framework for discovering causally homogeneous subgroups from observational data. Rather than clustering in covariate space, CaSPECT defines similarity through the topology of a learned directed acyclic graph (DAG); a bootstrap-stabilised PC algorithm recovers the causal skeleton; a novel \emph{Orientation Validation Score} (OVS) combines PC bootstrap evidence with DirectLiNGAM to orient edges robustly; directed edges are weighted by backdoor-identified average treatment effects estimated via OLS or double machine learning. Chung's directed Laplacian provides a spectral embedding in which individuals close together share the same causal propagation pathways. We establish almost-sure consistency of the full pipeline and validate the method through a controlled simulation study and on LaLonde CPS1, IHDP, and 401(k) datasets, where CaSPECT recovers a positive and statistically significant treatment effect within the causally comparable subpopulation and corrects for severe confounding without requiring a pre-specified propensity score model.
Jul 3, 2026stat.ML

Denoised Conformal Alignment for Reliable Selection of Conditional Average Treatment Effect Predictions

In selective deployment, practitioners act only on a model-chosen subset of individuals based on predicted conditional average treatment effects, but marginal conformal guarantees need not control reliability on that selected subset. We study reliable selection for black-box CATE predictors: selecting candidates whose CATE errors are below a tolerance while controlling the false discovery rate (FDR). Since CATE errors are unobservable, we construct doubly robust proxy errors from pseudo-outcomes; however, naive proxies can lose power under heteroskedasticity because variance overwhelms the reliability signal. We propose Denoised Conformal Alignment, which subtracts an estimated conditional variance component and combines conformal calibration with Benjamini--Hochberg selection. Our analysis shows that validity is governed by stability of proxy/oracle threshold labels, rather than pointwise perfection of the variance estimator. Experiments show substantially improved power while maintaining FDR control across challenging settings.
Jun 30, 2026cs.LG

Transformers as Bayesian In-Context Experimenters: Smoothness-Adaptive Efficient ATE Estimation

Adaptive experiments for average treatment effects (ATE) require randomized allocations balancing valid inference with statistical efficiency. The oracle design is a covariate-dependent Neyman rule governed by unknown arm-conditional outcome variances. We investigate whether this sequential variance-estimation and allocation process can be amortized via in-context learning. We introduce Bayesian in-context experimenters: transformer policies trained to imitate a Bayesian posterior Neyman teacher. The teacher updates nonparametric beliefs over potential outcomes using experimental history to assign posterior Neyman treatment probabilities. This design converges to the oracle rule, supporting efficient ATE inference. Transformers constructively implement this mapping through attention-based sufficient statistics and projected gradient descent, imitating Bayesian updating for Gaussian-series priors. To address unknown outcome smoothness, we combine smoothness-indexed experimenters using a mixture-of-experts transformer. The gate acts as a hierarchical posterior over smoothness classes, concentrating on near-oracle experts. By bounding the complexity of the transformer class, we prove this amortized policy can be learned via empirical risk minimization using supervised pretraining. Experiments confirm accurate teacher imitation, adaptive allocation, and improved ATE precision over baselines.
Jun 30, 2026cs.LG

Estimating Supply Incrementality in Two-sided Marketplaces: A Causal Machine Learning Approach

In two-sided marketplaces with heterogeneous products, it is important to understand the causal relationship between additional supply and marketplace outcomes, such as the total quantity transacted or transaction value in the marketplace. This paper studies a causal machine learning approach to estimating this relationship across product segments. We use the Airbnb marketplace as an example, focusing on the impact of additional listing supply on total bookings, but the methodology applies to other two-sided marketplaces. Our approach combines double/debiased machine learning with a hierarchical Bayesian framework that leverages pre-existing knowledge as priors. We construct tractable and informative features for the model by leveraging measures of product segment similarity from the geospatial literature. We find that such a model provides plausible estimates of the marketplace returns to additional supply and strong out of sample performance.
Jun 29, 2026stat.ML

Doubly Robust Adaptive Conformal Inference for Causal Effects Under Temporal Dependence

We propose doubly robust adaptive conformal inference (DR-ACI), which constructs prediction intervals for doubly robust pseudo-outcomes under temporal dependence.
Jun 26, 2026cs.AI

Lifted Causal Inference

Lifted inference exploits indistinguishabilities in probabilistic graphical models by using a representative for indistinguishable objects, thereby speeding up query answering while maintaining exact answers. In this article, we show how lifting can be applied to efficiently compute causal effects in relational domains. More specifically, we introduce parametric causal factor graphs (PCFGs) to incorporate causal knowledge in lifted models and give a formal semantics of interventions therein. We further present the Lifted Causal Inference (LCI) algorithm to compute causal effects on a lifted level, thereby drastically speeding up causal inference compared to propositional inference, e.g., in causal Bayesian networks. In addition, we present partially directed parametric causal factor graphs (PD-PCFGs) as a generalisation of PCFGs to handle partial causal knowledge and extend LCI to perform lifted causal inference in a PD-PCFG, thereby extending the applicability of lifted causal inference to a broader range of models requiring less prior knowledge about causal relationships.
Jun 25, 2026cs.LG

The Curse of Multiple Mediators: Hidden Interaction Effects in Activation Patching

Activation patching is the primary tool in mechanistic interpretability. It attributes causal responsibility for a model behavior to each of its individual components by estimating its natural indirect effect (NIE). Re-deriving the activation patching estimand from causal mediation analysis, we find that the NIE does not solely capture the causal effect through the specific component. It also contains interaction effects (INT) that measure how much the component's causal effect itself depends on the state of other components in the model. A natural response may be to try to eliminate INT by adjusting the estimator or unit of analysis, but each of these potential remedies has predictable failure modes. We demonstrate these failure modes in the GPT-2 IOI circuit; components whose causal importance is conditional on the state of other components are either invisible or artificially inflated, and INT variance explains the previously documented instability of faithfulness scores. We prove that INT scales with the distance between clean and patched component activations, is negligible when the model is locally affine, and decomposes combinatorially into pairwise and higher-order group interactions. Despite its inevitability, INT is not a nuisance to be eliminated, but rather a diagnostic for interpretability studies. Its individual and group-level magnitude and sign signal when causal conclusions are prompt-dependent, and when greedy NIE-based component ranking will miss mechanisms only discoverable through combinatorial search.
Jun 25, 2026cs.LG

Cross-Head Attention Uplift Network with Inverse Propensity Score under Unobserved Confounding

Uplift modeling, crucial for estimating individual treatment effects (ITE), faces dual challenges: flexibly leveraging inter-group similarity to enhance discriminative power and debiasing under unobserved confounding scenarios. In this paper, we propose the Cross-Head Attention Uplift Network (CHAUN) and Robust Adversarial Inverse Propensity Score (RA-IPS) method to address these limitations. CHAUN employs shared feature embeddings and cross-head attention mechanisms to dynamically integrate treatment-specific and control-specific representations, enhancing inter-group correlation modeling. Theoretically, we prove that access to the true propensity scores ensures ITE identifiability even with unobserved confounders. For practical scenarios lacking true propensity scores, RA-IPS adversarially optimizes propensity weights within constrained uncertainty sets to mitigate bias from unobserved variables. Experiments on public datasets (CRITEO-UPLIFT, LAZADA) and a production e-commerce dataset demonstrate CHAUN's superiority over state-of-the-art uplift models, achieving relative improvements of up to 25.6% in QINI scores. RA-IPS further enhances robustness, outperforming standard IPS by 5.4% under unobserved confounding. The results validate the effectiveness of our proposed methods in real-world causal inference tasks.
Jun 25, 2026cs.IR

Attributed, But Not Incremental: Cannibalization-Corrected Attribution for Large-Scale Advertising

In large-scale paid acquisition and growth advertising systems, production attribution outputs are widely used for daily budget allocation and channel diagnosis. However, paid-attributed conversions such as daily new users (DNU) may systematically overstate true incremental growth when paid channels overlap with organic demand, brand-driven traffic, or other acquisition channels. This attribution-cannibalization mismatch can distort incremental ROI measurement and budget decisions at scale. We propose an experiment-calibrated attribution correction framework that uses incrementality experiments as causal anchors to convert sparse lift measurements into daily correction estimates. To make the corrected signal actionable at production granularity, we further allocate calibrated cannibalization volume across business hierarchies under structural consistency constraints. Offline forward-in-time validation against channel-level incrementality experiment readouts shows that the proposed framework substantially reduces calibration error relative to raw attribution and fine-grained ML baselines. Deployed across multiple global TikTok markets, the system supported budget and traffic strategy adjustments that were followed by an approximately 15-percentage-point reduction in the measured cannibalization rate.
Jun 24, 2026cs.LG

OncoSynth: Synthetic data generation for treatment effect estimation in oncology

In oncology, access to patient-level data is often restricted. Synthetic data provides an alternative for analyzing treatment effectiveness, but existing methods for synthetic data generation fail to preserve the causal relationships between covariates, treatments, and outcomes, thereby leading to biased estimates of treatment effects. Here, we introduce OncoSynth, a generative, causally-aware machine learning framework designed to produce synthetic cohorts that enable accurate estimation of population- and patient-level treatment effects. OncoSynth uses a diffusion-based sequential approach to model how covariates influence treatment assignment and how treatment affects survival. We evaluate OncoSynth using large lung (N = 37,128) and breast cancer (N = 17,046) cohorts. Our results show that OncoSynth generates high-fidelity synthetic patient cohorts that preserve real-world patient, treatment, and outcome distributions. Notably, OncoSynth improves treatment effect estimation over existing approaches, by reducing population-level treatment effect error by up to 66%, and patient-level treatment effect error by up to 58%. Thereby, OncoSynth supports reliable evidence generation for precision oncology in settings where data sharing is restricted.
Jun 21, 2026cs.LG

A Survey on Federated Causal Discovery and Inference

Causal reasoning, which encompasses the discovery of causal structures and the inference of causal effects, is fundamental to data-driven decision making. In practice, data for reliable causal analysis are often distributed across institutions and cannot be centralized due to privacy regulations or communication constraints. Federated learning (FL) addresses this by enabling collaborative analysis without raw data sharing, giving rise to the rapidly growing field of federated causal discovery (FCD) and inference (FCI). However, the interdisciplinary nature of this field and the absence of a comprehensive survey present barriers to entry for researchers. This paper bridges that gap by providing a systematic review through multi-dimensional taxonomies. Grounded in the three core design decisions underlying any FCD solution, namely how structures are learned, how data are partitioned, and what structural knowledge each party obtains, we organize FCD along three axes: methodological paradigm, federation topology, and structural scope. We further examine key practical dimensions, including temporal dynamics, data heterogeneity, missing data, and non-identical variable sets. For FCI, we categorize methods by target estimand (average versus individualized/conditional treatment effects) and by estimation strategy, from classical weighting methods to modern deep generative architectures. Unlike prior works that treat FCD and FCI separately, we formalize their connection as complementary stages of a unified federated causal reasoning pipeline, where FCD supplies the structural knowledge required for valid effect estimation in FCI. Finally, we highlight their shared concerns regarding privacy, communication efficiency, theoretical guarantees, and application domains, and conclude by identifying open challenges for future research.
Jun 20, 2026cs.LG

Causal Gaussian Processes for Robust Treatment Effect Evaluation with Unobserved Confounding

The presence of confounding bias poses a key challenge in policy evaluation, as the target causal effects of actions are not identifiable (i.e., underdetermined) from observational data. On the other hand, existing confounding-robust evaluation strategies require detailed prior knowledge about the environment or apply only to discrete treatments and outcomes. This paper investigates causal effect evaluation over the continuous domain from confounded observations, while requiring only basic temporal ordering between the treatment and the outcome. We introduce a universal discretization of the exogenous domains that approximates the observational and interventional distributions of any causal model with arbitrary accuracy using a finite number of latent states. Building on this newfound universal approximation property, we develop a novel family of Causal Gaussian process (CGP) models that effectively approximate the observational and interventional distributions of any causal model with confounded observations.
Jun 19, 2026stat.ML

Two Layers of Instability in Causal Estimation

There is a precise sense in which drawing causal inferences from observational data is hard, even when identifiability is assumed. In particular, Robins and Ritov (1997) and Robins et al. (2003) showed that causal effects can be discontinuous as a function of the data distribution: two arbitrarily close data distributions might correspond to different causal effects. This is a fact independent of the choice of estimator; however, not all estimators are equally unstable. Our contribution is to surface a second layer of instability that depends on the choice of estimator. We show that many standard point estimates can be read as point summaries of multimodal distributions over the space of structural causal models. As such, estimators can jump discontinuously in the data distribution. This defines a taxonomy of estimators that admits a decision-theoretic reading: stability depends on whether the implicit loss function an estimator optimizes is aligned with the causal effect itself. Specifically, inverse propensity weighted estimators and regression estimators are examples of discontinuous summaries, while explicit posterior means and medians are shown to be continuous.
Jun 18, 2026cs.LG

Temporal Causal Prior-Data Fitted Networks for Panel Data with Learned Reliability Signals

Estimating causal effects in industrial time series requires handling temporal dynamics, time-varying treatments, and unobserved confounders. Existing causal foundation models (CausalPFN, CausalFM) operate only on static cross-sectional data; neural temporal methods (CRN, G-Net) require per-dataset training; and concurrent temporal-PFN proposals have not been demonstrated at industrial scale. None output explicit per-pair reliability signals alongside their CATE estimates. We introduce Temporal Causal Prior-Data Fitted Networks (TCPFN), a foundation model for zero-shot temporal causal discovery with learned reliability signals. TCPFN makes four contributions: (1) a Causal Judgment Head that jointly predicts null-effect probability, confounding strength, identifiability, mediation fraction, and causal regime; (2) a mixed training prior covering six causal regimes (independent, direct, confounded, mediated, time-varying confounded, feedback) plus CausalFM-style front-door and instrumental-variable priors; (3) a discrete-token panel-data architecture with cross-attention masking that prevents inter-horizon leakage; (4) zero-shot inference at industrial scale via FAISS-based context selection and one-step posterior correction. On 19 benchmark datasets across five domains, TCPFN achieves competitive zero-shot causal discovery: AUROC 0.96 on Tennessee Eastman, 0.93 on SWaT, 0.98 on Causal Rivers, 0.97 on CAUSRCA. The null detector reaches NullF1 0.94, AUROC 0.99. TCPFN scales to V=1,275 on a proprietary Kraft pulp-and-paper dataset in 6 hours on a single GPU; PCMCI, a CPU-only library, on a V=666 sub-panel of the same data took 81.5 hours, extrapolating by O(V^2) to ~12.5 days at V=1,275. TCPFN's top edges identify cross-subsystem causal relationships while PCMCI's surface within-instrument controller-measurement coupling -- a scalability case study.
Jun 17, 2026stat.AP

Estimating the Effect of Timing on Coupon Effectiveness

The coupon incentive is one of the most common tools marketers use to court users to engage with a business at various stages of the customer life cycle. A variety of factors can affect the effectiveness of a coupon incentive on users, timing being one of them. We hypothesize that coupons can be more effective when delivered at critical times in the customer journey, right when a user is engaging with the platform. Verifying such a hypothesis would typically require real time event-triggered coupon distribution software that may be too expensive to implement. In this paper, we propose a framework in which we apply causal inference on "natural randomized control trial experiments" to measure the effectiveness of sending coupons at the right time to users without requiring a dedicated AB test. We demonstrate the usefulness of our framework in the case of a user onboarding coupon campaign held in our company and show how the results can lead to correct data-driven decisions for the business. Furthermore, in order to test the generalizability of our framework, and to make our research more reproducible, we apply our framework on a user retention campaign with a publicly available dataset.
Jun 17, 2026stat.AP

Ensuring Trustworthy Online A/B Testing: Addressing Five Key Questions on CUPED

A/B testing has become the gold standard for data-driven decision-making in large-scale online experimentation, providing critical guidance for feature launch, pricing optimization, and user experience enhancement. To maximize statistical sensitivity, many technology companies routinely employ Controlled-experiment Using Pre-Experiment Data (CUPED), a technique that achieves substantial variance reduction while preserving the unbiasedness of estimating the average treatment effect. Despite its widespread adoption, several critical methodological and practical nuances of CUPED remain underexplored. This paper systematically addresses five frequently encountered yet overlooked questions regarding the application of CUPED. First, we provide a comparative analysis of various post-CUPED estimators to identify the optimal adjustment specification. Second, we evaluate the validity of regression-based adjustments and delineate robust variance estimation methods tailored for such frameworks. Finally, we extend our investigation to complex but common scenarios, including multi-arm experiments and two-stage sampling designs. Our findings reveal that in these settings, naive reliance on standard variance estimators can lead to severely misleading inferences. By offering rigorous theoretical insights and extensive experimental validation, this work deepens the conceptual understanding of CUPED. Notably, the recommended methodologies have been successfully deployed and integrated into ByteDance's experimentation platform.
Jun 16, 2026stat.ME

Shrinkage priors for Bayesian Substitute Confounders

Multi-cause observational studies contain information about unmeasured confounding through the dependence structure among causes. However, literal imputation of the unobserved confounder is often more complex than learning a lower-dimensional substitute score that preserves the shared assignment variation needed for stable causal adjustment. The deconfounder (Wang and Blei, 2019) and related substitute confounder methods exploit this idea, but flexible assignment models can fit the joint distribution of the causes while producing scores that over-encode the treatment vector, collapse overlap, or capture single-cause variation. We develop a Bayesian factor assignment framework for learning sparse substitute confounders that retain coarse multi-cause dependence with shrinkage priors. The theory is stated at the level of posterior concentration, factor score contraction, and overlap-preserving assignment geometry and therefore does not rely on a particular shrinkage prior. Under these conditions, the proposed regression-adjusted estimators are consistent for mean potential outcomes when the corresponding latent variable identification assumptions hold. Shrinkage priors provide a natural tool for latent structural learning: they favour low-dimensional factors supported by multiple causes, discourage effectively single-cause factors, and induce an ordering of the latent factors through progressive shrinkage. Synthetic experiments illustrate the roles of signal strength, outcome validity, and geometry-aware regularization. In an Alzheimer's Disease Neuroimaging Initiative (ADNI) baseline analysis, sparse substitute scores recover much of the adjustment obtained by directly conditioning on invasive cerebrospinal-fluid biomarkers, while collapse diagnostics identify when fitted factors reduce to individual observed measurements.
Jun 16, 2026physics.soc-ph

Public transit gains and spatially uneven travel demand changes after NYC congestion pricing

New York City implemented the nation's first cordon-based congestion pricing program in January 2025, providing an opportunity to evaluate how system-wide urban mobility responds to large-scale pricing interventions. Because such policies generate spillovers across modes and locations, credible control groups are difficult to construct. We address this challenge using time series foundation models to generate probabilistic counterfactual demand forecasts with calibrated uncertainty. Applying this framework to bus, subway, and aggregate trip volume data, we find that post-policy bus and subway ridership increased significantly relative to expected no-policy demand, while overall travel demand decreased modestly. The effects are spatially heterogeneous: while reductions in overall travel demand are concentrated within the Congestion Relief Zone, transit gains extend beyond Manhattan's core. Socio-demographic analyses further reveal uneven adaptation across neighborhoods, highlighting spatial equity implications. Our framework provides a scalable approach for the uncertainty-aware evaluation of system-wide urban interventions when clean control groups are unavailable.
Jun 15, 2026cs.LG

From Tokens to Policy: Causal and Interpretable Heterogeneous Treatment Effects Identification

Heterogeneous Treatment Effect (HTE) identification is essential to explain the impact of an intervention and optimize our policies accordingly. Existing approaches trade expressivity for interpretability, but, if some active heterogeneity drivers are unmeasured, methods at both ends of this spectrum allow for spurious HTE characterization with no causal reading. In this work, we focus on controlled experiments and argue that an oracle HTE causal characterization via the latent interactors is now within reach, thanks to (i) more extensive pre-treatment measurements, i.e., multi-modal and multi-view, and (ii) scalable representations with minimal human supervision. We then re-frame HTE identification as a Markov-blanket discovery problem on a sufficient and aligned pre-treatment representation, and introduce Neural EXposure Interaction Search (NEXIS), an iterative procedure with a provable selection guarantee. We deploy NEXIS on two anti-poverty programs in Africa, augmenting each with satellite imagery capturing previously unmeasured environmental effect modifiers, leading to new candidate prescriptive guidelines to optimize the programs' next iterations.
Jun 14, 2026cs.LG

Causal-Privacy Audit Workflow for Synthetic and Distilled Data in Dropout Support

Synthetic and distilled student data are increasingly used to enable privacy-conscious learning analytics, yet their suitability for decision-facing institutional support remains uncertain. In dropout support, generated data must preserve not only predictive utility or distributional resemblance, but also the financial-status evidence used to guide advising, payment-plan assistance, and scholarship-related decisions. Method: This study introduces CaP-Eval, a decision-facing causal-privacy audit workflow for evaluating generated student data under a fixed estimand, timing-aware adjustment design, estimator set, and empirical privacy-governance screen. The workflow compares original, distilled, adversarial synthetic, statistical synthetic, and DPGNet privacy-oriented generated data on predictive utility, treatment-effect fidelity, robustness to alternative estimators, and local training-record proximity. Results: DPGNet and distilled data preserved the original financial-status treatment-effect structure more reliably than the adversarial and Gaussian Copula baselines. DPGNet preserved full direction and rank agreement across epsilon levels; epsilon = 10 produced the smallest non-original IPW and DML deviations, while epsilon = 1 and epsilon = 5 amplified several financial-status contrasts. Distilled data remained highly faithful but retained the strongest local training-record proximity signal. TabularGNet preserved qualitative directions with moderate attenuation, and Gaussian Copula compressed effect magnitudes. Conclusions: Predictive utility, privacy orientation, empirical disclosure signals, and causal fidelity diverged; generated student data require joint audits of direction, magnitude, overlap, and release-governance risk before decision use.
Jun 14, 2026cs.LG

Bayesian Networks with Latent Time Embedding for Stage-Aware Causal Modeling of Alzheimer's Disease Progression

Alzheimer's disease (AD) progression is often described through the amyloid-tau-neurodegeneration, or AT(N), cascade. However, most longitudinal models represent this cascade either as a fixed sequence of biomarkers or as a black-box forecasting task. This makes it difficult to determine when biologically guided biomarker relationships influence future regional pathology. In this study, we introduce Bayesian Networks with Latent Time Embedding (BN-LTE), a Bayesian structural framework for stage-aware modeling of AD progression. BN-LTE estimates disease pseudotime from baseline biomarker profiles and constrains directed dependencies according to biologically plausible AT(N) ordering. Posterior spline-varying structural equations are then used to link initial multimodal measurements with future annualized regional tau-PET change. Across repeated subject-disjoint evaluations using ADNI data, BN-LTE shows strong spatial reconstruction of tau progression compared with the included forecasting baselines. Beyond spatial reconstruction, BN-LTE recovers posterior stage-varying AT(N)-constrained effects and identifies a mid-pseudotime window of amyloid sensitivity. This window is supported by model-implied g-formula contrasts, root-adjusted AIPW, mechanism-sensitive ablations, and robustness analyses across spline and prior specifications. Overall, these findings position BN-LTE as a Bayesian structural framework for forecasting tau progression while examining stage-dependent AT(N)-cascade mechanisms in observational longitudinal neuroimaging data. Our code is available at https://github.com/danleneurocom/BN-LTE.
Jun 13, 2026cs.LG

AI for Social Good: An Investigation of the Causal Relationship Between Environmental Regulations and Their Effects on Air Pollution in London, UK

Air pollution regulation is central to urban public health governance, but estimating its effects is difficult because policies are implemented non-randomly and pollution trajectories are shaped by meteorology, socioeconomic change, temporal trends, and overlapping interventions. This study develops an uncertainty-aware Bayesian deep learning framework to estimate the aggregate effect of air pollution regulations on PM2.5_{2.5} concentrations in London from 2010 to 2020. The framework integrates daily PM2.5_{2.5} observations from Inner London monitoring stations, meteorological covariates, annual socioeconomic indicators, month-of-year and day-of-week indicators, and daily regulation status data for 32 policy measures. A Bayesian LSTM captures temporal dependencies in environmental and socioeconomic covariates, Bayesian embedding layers represent temporal and regulation status inputs, and a regulation status prediction branch supports propensity score-based adjustment for non-random policy implementation. Regulatory effects are estimated by comparing observed PM2.5_{2.5} concentrations with counterfactual predictions under a hypothetical no-regulation scenario, with uncertainty summarized across repeated Bayesian training runs and bootstrap resampling. Results show that London's regulations were associated with an average PM2.5_{2.5} reduction of 1.88 μμg/m3^3, a relative reduction of 12.35%, with a 95% confidence interval of 1.64-2.12 μμg/m3^3. Estimated effects were limited before 2013, became clearer from 2013 to 2017, and were strongest in 2018 and 2019. The findings suggest that sustained and cumulative regulatory interventions contributed to measurable improvements in London's air quality. This study demonstrates how uncertainty-aware causal AI can support environmental accountability, public health protection, and evidence-based governance for environmental decision-making.