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Synthetic Combinations: A Causal Inference Framework for Combinatorial Interventions

Author

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  • Abhineet Agarwal
  • Anish Agarwal
  • Suhas Vijaykumar

Abstract

Consider a setting where there are $N$ heterogeneous units and $p$ interventions. Our goal is to learn unit-specific potential outcomes for any combination of these $p$ interventions, i.e., $N \times 2^p$ causal parameters. Choosing a combination of interventions is a problem that naturally arises in a variety of applications such as factorial design experiments, recommendation engines, combination therapies in medicine, conjoint analysis, etc. Running $N \times 2^p$ experiments to estimate the various parameters is likely expensive and/or infeasible as $N$ and $p$ grow. Further, with observational data there is likely confounding, i.e., whether or not a unit is seen under a combination is correlated with its potential outcome under that combination. To address these challenges, we propose a novel latent factor model that imposes structure across units (i.e., the matrix of potential outcomes is approximately rank $r$), and combinations of interventions (i.e., the coefficients in the Fourier expansion of the potential outcomes is approximately $s$ sparse). We establish identification for all $N \times 2^p$ parameters despite unobserved confounding. We propose an estimation procedure, Synthetic Combinations, and establish it is finite-sample consistent and asymptotically normal under precise conditions on the observation pattern. Our results imply consistent estimation given $\text{poly}(r) \times \left( N + s^2p\right)$ observations, while previous methods have sample complexity scaling as $\min(N \times s^2p, \ \ \text{poly(r)} \times (N + 2^p))$. We use Synthetic Combinations to propose a data-efficient experimental design. Empirically, Synthetic Combinations outperforms competing approaches on a real-world dataset on movie recommendations. Lastly, we extend our analysis to do causal inference where the intervention is a permutation over $p$ items (e.g., rankings).

Suggested Citation

  • Abhineet Agarwal & Anish Agarwal & Suhas Vijaykumar, 2023. "Synthetic Combinations: A Causal Inference Framework for Combinatorial Interventions," Papers 2303.14226, arXiv.org, revised Jan 2024.
  • Handle: RePEc:arx:papers:2303.14226
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    References listed on IDEAS

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    1. Tirthankar Dasgupta & Natesh S. Pillai & Donald B. Rubin, 2015. "Causal inference from 2-super-K factorial designs by using potential outcomes," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 77(4), pages 727-753, September.
    2. Stefan Eriksson & Dan-Olof Rooth, 2014. "Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment," American Economic Review, American Economic Association, vol. 104(3), pages 1014-1039, March.
    3. Susan Athey & Mohsen Bayati & Nikolay Doudchenko & Guido Imbens & Khashayar Khosravi, 2021. "Matrix Completion Methods for Causal Panel Data Models," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1716-1730, October.
    4. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    5. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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    Cited by:

    1. Anish Agarwal & Keegan Harris & Justin Whitehouse & Zhiwei Steven Wu, 2023. "Adaptive Principal Component Regression with Applications to Panel Data," Papers 2307.01357, arXiv.org, revised Oct 2023.

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