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Causal Identification under Interference: The Role of Treatment Assignment Independence

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  • Julius Owusu
  • Monika Avila M'arquez

Abstract

Empirical researchers routinely invoke the no-interference or \textit{individualistic treatment response} (ITR) assumption to identify causal effects in observational studies, despite concerns that interference across units may arise in many economic settings. This paper studies the causal content of standard ITR-based identification formulas when arbitrary interference is present. We show that, under restrictions on dependence between treatment assignments across units, conventional ITR-based identification formulas -- including those underlying selection-on-observables, instrumental variables, regression discontinuity designs, and difference-in-differences -- identify well-defined causal objects: types of \textit{average direct effects} (ADEs). These results do not require knowledge of the interference structure or specification of exposure mappings. We also propose a sensitivity analysis framework that quantifies the robustness of statistical inference to violations of treatment-assignment independence under arbitrary interference.

Suggested Citation

  • Julius Owusu & Monika Avila M'arquez, 2026. "Causal Identification under Interference: The Role of Treatment Assignment Independence," Papers 2604.22532, arXiv.org.
  • Handle: RePEc:arx:papers:2604.22532
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    File URL: http://arxiv.org/pdf/2604.22532
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