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Randomization Inference of Heterogeneous Treatment Effects under Network Interference

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  • Julius Owusu

Abstract

We design randomization tests of heterogeneous treatment effects when units interact on a single connected network. Our modeling strategy allows network interference into the potential outcomes framework using the concept of exposure mapping. We consider several null hypotheses representing different notions of homogeneous treatment effects. However, these hypotheses are not sharp due to nuisance parameters and multiple potential outcomes. To address the issue of multiple potential outcomes, we propose a conditional randomization method that expands on existing procedures. Our conditioning approach permits the use of treatment assignment as a conditioning variable, widening the range of application of the randomization method of inference. In addition, we propose techniques that overcome the nuisance parameter issue. We show that our resulting testing methods based on the conditioning procedure and the strategies for handling nuisance parameters are asymptotically valid. We demonstrate the testing methods using a network data set and also present the findings of a Monte Carlo study.

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  • Julius Owusu, 2023. "Randomization Inference of Heterogeneous Treatment Effects under Network Interference," Papers 2308.00202, arXiv.org, revised Jan 2024.
    • Handle: RePEc:arx:papers:2308.00202
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    References listed on IDEAS

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    1. Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2008. "Nonparametric Tests for Treatment Effect Heterogeneity," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 389-405, August.
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    12. Chung, EunYi & Olivares, Mauricio, 2021. "Permutation test for heterogeneous treatment effects with a nuisance parameter," Journal of Econometrics, Elsevier, vol. 225(2), pages 148-174.
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    14. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881.
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